Calgary-based EnCana Corp., Canada's largest petroleum producer and one of the largest independent oil and gas producers in the world, is again on the move in the Middle East, having just acquired new acreage in Oman in addition to its existing holdings in Bahrain, Qatar, and Yemen.
Formed a year ago through the merger of PanCanadian Energy Corp. and Alberta Energy Company, EnCana is not only on the lookout for more prospects in the region but also has a diplomatic edge in Dana Coffield, vice-president, Middle East exploration.
"I spent 11 years in Libya as a kid and loved it," Coffield says, adding that he spent a "further 3 years" in Lebanon. All that was due to the work of his father, Cal Coffield, a geologist for Amoco International Oil Co.
Coffield, however, has more than childhood experiences to bolster his credentials in the Middle East. He also earned graduate degrees in geology, using fieldwork in the region as the basis of his studies.
"In the early 1980s, I did my (master's) thesis fieldwork on outcrop mapping in the Oman Mountains, while in the late mid-1980s, my PhD dissertation fieldwork was done in Egypt, in the Gulf of Suez rift," Coffield says.
Coffield's experience working in the region has already brought dividends to EnCana, which began pursuing opportunities with Oman in early 2002.
"Personally, I have dealt with Omanis since graduate school in the early '80s," he says, adding that "the Omani people are exceptionally hospitable, very pragmatic and transparent, and respected 'bargainers.'"
Exploration opportunities
As a result of those efforts, Coffield says, "EnCana International (Oman) Ltd., a subsidiary of EnCana Corp., signed an EPSA (exploration and production-sharing agreement) for onshore exploration Blocks 3 and 4 with the government of the Sultanate of Oman at the Ministry of Oil and Gas on Feb. 9, 2003."
Under terms of the agreement, EnCana plans to explore for oil and gas on the 11,404 sq km Afar Block (Block 3) where former operator, privately held Saudi Arabian company Nimir Petroleum Co. Ltd., drilled and abandoned two wells in January 2002.
EnCana also plans to explore the 27,471 sq km Ghunaim Block (Block 4), which is located in the Saiwan subbasin at the eastern edge of the Ghaba salt basin and includes the Huqf uplift and parts of the Masirah trough.
Formerly operated by TotalFinaElf SA (now Total SA), Block 4 saw the drilling of one exploratory well, which was abandoned in 1998 after reaching TD of 13,639 ft without encountering significant hydrocarbon shows.
Both the Afar and the Ghunaim blocks have recent seismic and well data available through Oman's Ministry of Petroleum Oil and Gas. Coffield says EnCana will have access to all of it and soon will be reprocessing the existing 2D seismic data as well as acquiring new seismic data.
Coffield is upbeat about EnCana's prospects on both blocks, saying that Oman has a "prolific basin, large proven reserves, and high-quality source rock." He also says EnCana will bring "innovative techniques" and "new geologic concepts" into its search for Omani oil.
EnCana would hardly be the first Canadian company to use innovative technology to find oil in locations where predecessors came up dry.
A decade ago, Calgary-based Canadian Occidental Petroleum Corp.—now known as Nexen Corp.—brought a variety of modern technologies to bear on its acreage on Yemen's Masila Block, and came up with a string of prodigious finds, all in an area that had been unsuccessfully combed for decades before.
Comparison with Nexen is hardly fortuitous. Not only are both companies based in Calgary, they also work side by side in Yemen, where EnCana operates Block 60, which is neatly placed next to Nexen's Blocks 50 and 59 along the Saudi border.
In Yemen, EnCana also operates Block 47, which is close to Nexen's Block 14 in Wadi Masila, a prolific site that produces about 220,000 b/d of oil—almost half of Yemen's entire output.
Coffield says EnCana is currently interpreting the results of 2D seismic acquired on Block 60, while it is preparing to drill one well on Block 47 after completing seismic work there.
In addition to Yemen, Coffield also draws attention to EnCana's work elsewhere in the Persian Gulf region, including interests in Qatar, where it operates Block 2 in partnership with ChevronTexaco Corp. and Svenska Petroleum Exploration Production AB, and Bahrain, where it works with ChevronTexaco on offshore Block 5.
He underlines other EnCana interests in the greater Middle East and Africa as well.
"In Azerbaijan, we are partners with BP (PLC, operator), ExxonMobil (Corp.), Statoil (ASA), (Turkey's state owned) TPAO, and SOCAR (State Oil Co. of the Azerbaijan Republic) in the Araz, Alov, and Sharg PSA, an offshore exploration block in the South Caspian," he says, adding that "in Africa, we are operator of exploration licenses in Chad and are exploring Offshore Ghana."
Balanced perspective
Coffield's experience in the Middle East gives him a balanced perspective when discussing the region's political climate. While well aware of political problems elsewhere in the region, he nonetheless gives Oman high marks for its stability.
"Oman has a very well-established petroleum industry, legal and fiscal regime, a stable and respected government, and a well-educated population," he says, adding that "EnCana is making this investment in Oman, not in other countries, where the climate of 'political uncertainty' exists."
He even gives a thumbs-up to neighboring Yemen, long considered a politically unstable environment—especially after the terrorist attack last October on the French tanker Limburg as it made for Nexen's export terminal at Shihr on the Gulf of Aden.
Coffield underlined his optimism last Autumn with the opening of EnCana's office in Yemen, saying then that "we have two blocks, and we hope to identify getting more opportunities in the future." He supports his view by noting that EnCana's Block 60 came into existence following peaceful border negotiations between Yemen and Saudi Arabia, while the attack on the Limburg had "no specific impacts whatsoever on our business."
Meanwhile, keeping his mind on the business at hand, Coffield has a clear view of what's to be done in Oman.
"The first step will be opening an office, which we hope to have done in the second quarter of 2003, while in parallel, we have initiated data-transfer to Calgary and will soon be tendering for reprocessing of the existing seismic data," he said.
For Coffield, though, the job in Oman is not just a technical process: "We're excited to be involved with E&P in Oman, where we are working with people who are very experienced, knowledgeable, and pragmatic. They understand that both sides have to win."
Career highlights
Dana Coffield was appointed EnCana Corp.'s vice-president for Middle East exploration in 2002. He is responsible for exploration and delineation on EnCana's acreage in Yemen, Qatar, Bahrain, and Oman.
Employment
After 10 years with Amoco Corp. predecessor ARCO in various international assignments, Coffield joined EnCana's predecessor company Alberta Energy Co. Ltd. in 1998 as manager, new ventures. He was later appointed vice-president, new ventures.
Education
Coffield earned his BS in geological engineering from the Colorado School of Mines in 1981. He earned his MS and PhD from the University of South Carolina in 1984 and 1988, respectively. Dana's international career began while he was still a student, with his master's thesis and his dissertation focused on the geology of the Middle East and North Africa.