Orca Energy to increase production at Songo Songo, Tanzania
Orca Energy Group Inc. will support production on Songo Songo Island, Tanzania, with new compression and is exploring options for additional production with workovers and new drilling.
The company signed a contract with China Petroleum and Technology Development Co. for design, supply, installation, and commissioning of natural gas compressors within the Songas gas processing facility. The compressors will work with previously installed refrigeration to support declining reservoir pressure and sustain maximum production, subject to demand, through end of the production sharing agreement in 2026.
The compressors are scheduled to be operational by the end of second-quarter 2022. The compressors are forecast to cost $38 million of which $6 million was expended in 2019 and $19 million will be incurred over the remainder of 2020.
The company is preparing to work over onshore well SS-10 in early 2021. A decision on remedial work for two older onshore wells, SS-3 and SS-4, will be taken once a major subsurface review of Songo Songo gas field is finalized in fourth-quarter 2020. This review, which includes a re-build of static and dynamic reservoir models, will enable the company to assess whether either workover of SS-3 and SS-4 or drilling of new infill wells will be preferable over the remainder of the license period. The review will also incorporate latest trends in pressure measurements to allow full re-assessment on contingent and prospective resource potential and associated economics of drilling and developing natural gas in Songo Songo North and Songo Songo West areas.
Orca’s additional gas sales averaged 50.6 MMscfd for the second quarter and 53.5 MMcfd for the 6 months ending June 30. Gas sales were impacted by sustained and significant rainfalls that enabled the Tanzania Electricity Supply Company (TANESCO) to operate its hydro facilities at high utilization rates. The country is now entering the dry season and gas demand is expected to increase for the remainder of the year.