Ghadames fueling Tunisian oil production growth

July 2, 2007
The Ghadames basin in southern Tunisia has become a core area for Pioneer Natural Resources Co., Dallas, which is operating or participating in oil and gas-condensate developments on several blocks.

The Ghadames basin in southern Tunisia has become a core area for Pioneer Natural Resources Co., Dallas, which is operating or participating in oil and gas-condensate developments on several blocks.

Pioneer is evaluating opportunities to extend its Ghadames basin position into Algeria and Libya.

While it builds oil production facilities this year on the 384,000-acre Jenein Nord Block, Pioneer and other producers are working with the government to evaluate the opportunity to expand infrastructure to supply gas from the southern part of the country to northern Tunisian markets. Jenein Nord is 450 miles south of Tunis.

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Playing mainly the Silurian, Pioneer has drilled four new field discovery wells on the Jenein Nord Block since late 2006 with combined multizone gross test rates of 30,000 boed, 85% oil and 15% gas-condensate. Pioneer noted that the combined test rate isn’t necessarily indicative of an actual combined production rate.

The company’s net production of 5,000 boed as of late May is expected to grow 80% in 2007 with start-up of the Jenein Nord discoveries near the end of the year and 90% in 2008.

The most recent discovery, Shaheen-1, tested at 8,000 boed (OGJ Online, June 8, 2007). The other discoveries are Waha, Cherouq, and El Badr.

Meanwhile, Pioneer has participated in 11 wells with 10 successes on the Adam concession, where Eni SPA is the operator. Production there exceeded 20,000 b/d, and a new discovery went on line in mid-May 2007 at 3,500 b/d.

With a $70 million hike in 2007 capital spending, the company expects to drill at least seven more wells this year. That will include up to four exploration wells on Jenein

Nord and three wells on the adjacent nonoperated blocks. The net position is 3.9 million acres.

Pioneer operates Jenein Nord with 100% interest, and Tunisia’s state ETAP has a 50% back-in right.

The company and its partners have acquired 1,200 sq km of 3D seismic, and Pioneer has identified more than 30 prospects on its acreage, some with individual resource potential as large as 25 million boe.

The Jenein Nord block is east of giant El Borma field, discovered in 1964. Operated by Eni, El Borma averaged 11,000 b/d in 2006 (OGJ, Dec. 18, 2006). OGJ estimated Tunisia’s oil production at 95,000 b/d in March 2007, up 41% on the year (OGJ, June 11, 2007, p. 70). Eni, which has operated in Tunisia since 1963, operates Borj el Kadra with 50% interest, Talisman Energy Inc. has 30%, and Pioneer has 20%. ENI produced 17,000 boed in Tunisia in early 2007.

Anadarko Petroleum Corp. operates the 1.1 million acre Anaguid Block, where it made two discoveries in 2003. Chaabet El Merkanti-1 cut 95 ft of pay and tested 4 MMcfd of gas and 500 b/d of condensate. Samet El Anaguid-1 cut 52 ft of net pay in the same formation. Development plans have not been filed for either discovery.

Also active in the Ghadames basin on the 100% owned Chouech Es Saida and Ech Chouech concessions south of El Borma is Winstar Resources Ltd., Calgary.

Winstar finalized agreements in May with the Tunisian Ministry Energy, Eni, and the Tunisian national gas and electricity utility to process and sell associated gas from Chouech Es Saida, where at the time it was producing 1.4-1.5 MMcfd. Winstar planned to cease flaring and begin selling gas in mid-May. The gas was to be transported to the El Borma concession through an 80-km, 100% owned pipeline with Winstar receiving $7-7.50/Mcf.

Net oil production, 1,550 b/d with one well down due to a failed pump, was expected to be closer to 1,900 b/d with the start-up of gas sales compared with 200 b/d a year earlier.