BW Offshore Ltd. (BWO) said a revised Ruche development plan that includes the Hibiscus discovery will accelerate production growth from the Dussafu license offshore Gabon, resulting in estimated gross production from Phase 1 of 30,000 b/d from 15,000 b/d. The volumes are in addition to production from Tortue field, the company said.
Changes to the plan follow the successful Hibiscus exploration well (DHIBM-1). The DHIMB-1 well was initially drilled in 116 m of water to 3,538 m VD. On Aug. 30, partner Panoro Energy announced an oil discovery in the presalt Gamba reservoir with plans to drill a sidetrack to appraise the extent of the Hibiscus updip discovery.
The Hibiscus updip oil discovery was appraised with a sidetrack (DHIBM-1ST1) to the northwest to test the lateral extent and structural elevation of the reservoir. The sidetrack was drilled to a 3,500 m TD, about 1.1 km from the original wellbore and found a 33-m oil column with 26 m of oil pay in the Gamba reservoir with better reservoir character and a similar fluid level to that encountered in the vertical well, DHIBM-1.
Under the revised plan, the contemplated platform will be moved 4 km west to incorporate Hibiscus resources. Ruche phase 1 will consist of four Hibiscus production wells and two Ruche wells, all from the Gamba formation. Phase 2 will develop the additional proved resources through as many as 7 wells to maintain the production plateau. The change will not affect expected timing of the start of oil production from Ruche.
“Hibiscus is proving to be a discovery of equal quality and magnitude to the Tortue field. The revised development will add to our production capacity and take us above the [floating production, storage, and offloading vessel’s] current nameplate of 40,000 b/d (OGJ Online, Sept. 17, 2018). We are confident that the license partners will support the revised development plan launched by BW Energy,” said BWO Chief Executive Officer Carl K. Arnet.
The estimated capital expenditures for the revised Phase 1 has been increased to $445 million (gross) from $375 million. The estimated incremental reserves produced by Ruche Phase 1 are 50 million bbl gross (management estimate). Total field operating costs including Ruche Phase 1 are estimated to be $10/bbl excluding royalties and taxes at current FPSO nameplate capacity.
An updated reserve report from Netherland, Sewell & Associates Inc. assess the Hibiscus reserves at 45.4 million bbl of oil (2P) gross. This increases the Dussafu licenses 1P, 2P, and 3P gross 68%, 68%, and 69%, respectively.
BWO is now drilling four production wells in Tortue field to be followed by another exploration well under the current sanctioned development program. This program is expected to result in an average gross production of 16,000 b/d in the first half of 2020 and 23,000 b/d in the second half of 2020. Tortue field produced gross average of 11,600 b/d in this year’s third quarter.
BWO has options for two additional exploration wells with Borr Drilling. If exercised, the wells would extend the current drilling campaign to third-quarter 2020.
Results from ongoing seismic reprocessing are expected by yearend, the company said.
Financing for Ruche Phase 1 development is expected to come from existing liquidity and cash-flow from operations. The company continues its preparations for a planned listing on the Oslo Stock Exchange.
BWO holds a 73.5% working interest in the Dussafu Marin block offshore Gabon. Partner is Pan-Petroleum Gabon BV, a subsidiary of Panoro Energy ASA.
BW Energy is 68.6% owned by BWO, 30.5% by BW Group Ltd., and 0.9% by Arnet Energy Pte. Ltd.