Sao Tome acreage boosts Mobil off West Africa

Here is a first look at the large area of blocks off West Africa that a Mobil affiliate will evaluate in the Sao Tome & Principe Exclusive Economic Zone. Under the Sept. 10 technical assistance agreement with Sao Tome and Principe National Petroleum Co. (Stpetro), Mobil's New Exploration and Producing Ventures Group will evaluate 22 deepwater blocks covering 12 million acres. Following the 18 month technical evaluation, Mobil will have the exclusive option to negotiate with Stpetro for a

Oct. 5, 1998

3 min read

Here is a first look at the large area of blocks off West Africa that a Mobil affiliate will evaluate in the Sao Tome & Principe Exclusive Economic Zone.

Under the Sept. 10 technical assistance agreement with Sao Tome and Principe National Petroleum Co. (Stpetro), Mobil's New Exploration and Producing Ventures Group will evaluate 22 deepwater blocks covering 12 million acres. Following the 18 month technical evaluation, Mobil will have the exclusive option to negotiate with Stpetro for a production sharing contract on the acreage.

Lance Johnson, group president, said, "We are eager to move ahead with the seismic program and hope that a combination of favorable geology and Mobil's regional and deepwater technical knowledge will soon enable Sao Tome and Principe to join the ranks of oil producing nations."

Most of Sao Tome's EEZ is in more than 2,000 m of water, but the onward thrust of E&D into deeper water encouraged the republic to evaluate its hydrocarbon potential.

Stpetro, legally established by Decree Law in July 1998, is a public oil company held 51% by the government and 49% by Environmental Remediation Holding Corp., Lafayette, La.

West Africa holdings

The Sao Tome acreage expands Mobil's already considerable interests in the Gulf of Guinea and Niger Delta.

The company's share of production in Nigeria averaged 253,000 b/d in 1997 and is projected to increase to 370,000 b/d by 2002. Mobil also has production in nearby Cameroon and Equatorial Guinea.

Mobil and Ocean Energy Inc. began production in late 1996 at a fast-track project west of Equatorial Guinea's Bioko Island. Some 18 months following discovery, they began production from Zafiro oil field. The second phase of the Zafiro field development increased field production capacity to about 80,000 b/d last year.

Production capacity will be increased to about 120,000 b/d in 2000, with total development spending for wells and facilities through 2000 forecast to be $900 million.

The Zafiro team employed a powerful array of new technologies to boost reservoir performance in record time.

Mobil's proprietary neural network technology was used in a real time mode to optimize placement of development wells.

Hinge Over Subsea Template Technology (HOST) facilitated rapid, flexible field development and reduced costs by 60% compared with conventional developments, the company said.

The technology implemented at Zafiro is immediately applicable to deeper water acreage such as that in Sao Tome and Principe.