Exploration - Exploration

ReconAfrica to begin open-hole horizontal testing onshore Namibia

Jarvie-1 rig will drill horizontal sidetrack laterals. (Image source: ReconAfrica)

Reconnaissance Energy Africa has completed vertical production testing on the Kavango West 1X (KW1X) well onshore Namibia, and is preparing to mobilise the Jarvie-1 rig to commence open-hole horizontal production testing operations in the Huttenberg formation, targeting up to 1,000 metres

The vertical production testing programme helped identify up to two well zones that contained hydrocarbons capable of flowing to surface. Natural gas and potential liquids flowed to surface from the upper Huttenberg as well as the upper Elandshoek zones. While targeting the Huttenberg zone of interest, flow was generated immediately upon perforation, even before subjection to acid stimulation, and was flared through the relief flare stack.

To achieve similar promising results from the four other zones of the well which are considerably shallower than the Elandshoek, open-hole horizontal production test was the best option available to target reservoir section previously untouched by production casing, cement and perforations. Completing the well open hole, without casing or cement, tends to maximise flow from fractures. This decision was reached on the basis of original well log analysis that indicated 75 metres of pay while confirming presence of matrix porosity between large natural fractures with inclinations of 50-90 degrees. These largely vertical fractures need complementing with perpendicularly drilled horizontal wells to hit the sweet spot.

“We are excited to report another critical milestone of the KW1X production test, which is achieving our primary objective of proving the flow of hydrocarbons to surface, this time from the uppermost zone of the Huttenberg formation. The vertical cased-hole phase of testing at KW1X is now complete and with the significant data and technical information gathered from this test, we have a high level of confidence moving forward with an open-hole horizontal production test in the Huttenberg formation.

"Importantly, KW1X's well results do not just validate a single structure; it also opens running room across the block. We have mapped 22 structures using existing seismic data and anticipate the inventory could grow with additional seismic coverage on PEL 73. We also believe our acreage in Angola could add additional structures to our inventory. These results have made critical steps to derisk and open a new play fairway.

Confirming the KW1X results with a flow rate test on a horizontal sidetrack as soon as possible will ultimately support resource and reserve bookings and a final investment decision on this emerging Damara Fold Belt Play," said Reconnaissance's President and CEO, Brian Reinsborough.

Horizontal development of the Damara Fold Belt structures is also expected to reduce surface land disturbance as well as the number of wells required per structure, resulting in lower field development costs and improved capital efficiency.

Based on formation imaging log analysis from wells drilled through the Otavi reservoir, the Jarvie-1 rig will drill the horizontal sidetrack laterals near fractures ranging 1.0 to 12.7 per metre running parallel to the fold structure. Two high pressure pumps, a swabbing unit and additional supporting equipment have been procured to effectively initiate the drilling and production testing operations. ReconAfrica has contracted H2OIL to conduct surface operations and provide additional surface equipment, including an appropriately sized separator unit. Halliburton will continue to provide downhole equipment and services.

Sonatrach accelerates upstream decarbonisation with Eni

The new agreement widens the scope of collaboration.

To put in place decarbonisation practices while working together on concessions, Algeria's state-owned oil company, Sonatrach, has signed a new Memorandum of Intent with Italian oil major, Eni, with international best practices in mind

The latest signing is built on a three-year Memorandum of Intent that was originally secured in 2023, committing to reducing gas flaring, valourising recovered gas, and mitigating emissions associated with upstream activities in Algeria.

The new agreement widens the scope of collaboration, including natural CO₂ removal initiatives through forestry projects, and advance monitoring, quantification and reduction of methane emissions based on international Oil & Gas standards.

The new Memorandum of Intent builds on the previous one by further broadening the scope of cooperation and introducing new areas of collaboration. In particular, the parties will cooperate in the field of natural CO₂ removal initiatives through forestry projects and will strengthen activities for the monitoring, quantification and reduction of methane emissions through the adoption relevant international oil & gas standards.

The technical analyses, capacity building initiatives and field visits that made up the carefully structured 2023 agreement have materialised in reduced fugitive and venting emissions, and flaring while boosting energy efficiency and unlocking opportunities for carbon capture, utilisation and storage. It has also produced technicians with new skills in generating the right measurements in terms of greenhouse gas and methane emissions reductions.

The most innovative outcome of the 2023 agreement has been the Leak Detection and Repair (LDAR) campaign, which was carried out across 800 km of pipelines, with around 7,500 monitored points and relevant reduction of fugitive emissions. LDAR measurement campaigns are now conducted autonomously on a routine basis in all joint ventures jointly operated by Eni and Sonatrach.

The evaluation of the baseline emissions was also carried out in six upstream assets operated by Eni and Sonatrach in the country.

Saipem bags drilling contract in Ivory Coast

The drillship Santorini offshore Ivory Coast.

Saipem has been awarded a new offshore drilling contract by Eni Ivory Coast, which is worth US$260mn

The contract particulars include deployment of the drillship Santorini offshore Ivory Coast for a long-term development drilling campaign, with operations scheduled to begin in early 2027. There will also be scope for an extended drilling programme, with the potential deployment of the rig in neighbouring countries as well as additional optional periods. This arrangement secures for Saipem long-term visibility and continuity of the unit’s future utilisation.

This new award confirms Saipem's competitive positioning in offshore drilling, as well as its ability to efficiently deploy its high-specification assets in support of clients' exploration, appraisal and development activities.

Saipem has also bagged a million euro contract offshore Ivory Coast for the third development phase of Eni's Baleine project.

Saipem will be overseeing the engineering, fabrication, transportation and installation work at water depths up to 1,300 meters, building approximately 50 km of rigid pipelines and associated subsea structures. The project aligns with the energy services provider's reputation in delivering complex energy infrastructures of strategic importance to global operators.

Construction vessels FDS and Shen Da will be deployed for around three years to support operations of scale, involving the transportation and installation of flexible risers, flexible jumpers, subsea production systems and a 3-km-long flexible gas export flowline, as well as 22 km of subsea umbilical.

The strategically significant offshore project's engineering, procurement and construction works across multiple wells will be undertaken by SLB's OneSubsea joint venture. This will involve the installation of complete subsea production systems (SPS) for 13 wells.

This contract will support the entire well life cycle, starting with the installation of subsea trees, umbilical, manifolds, multiphase flowmeters and control systems, through to commissioning and life-of-field services. This integrated approach will streamline execution and support the project’s fast-track development schedule.

Nigeria becomes Association Country of IEA

Nigeria is joining the IEA. (Image source: IEA)

The International Energy Agency has recognised Nigeria as integral part of global energy governance with its Governing Board unanimously welcoming it as an Association country

This decision is driven by Nigeria's influence as one of Africa's predominant economic region, including its established stronghold as oil and gas producer as well as its growing renewables potential. For Nigeria, on the other hand, this recognition will bring substantial support to the country of over 240 million people, tackling energy inequality and clean cooking challenges.

“I am thrilled that Nigeria is joining the IEA – it is Africa’s most populous country and a major international energy player. Nigeria becoming part of the world’s energy authority marks a milestone for global energy governance. I am very thankful to President Tinubu and Minister Ekpo for their trust in the IEA,” said IEA executive Director Fatih Birol. “As Nigeria works to strengthen energy security, support economic growth and expand energy access, deeper cooperation with the IEA will bring important benefits for both sides. We look forward to building on our already strong partnership and welcoming Nigeria to the IEA.”

“I am elated with the decision of the IEA Members to officially welcome Nigeria to the IEA Family as an Association country,” said Nigeria’s Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo. “It is an honour for Nigeria to join this leading energy agency and I will take this opportunity to encourage the African continent to embrace the IEA, as we all work together to achieve key development goals including universal energy access and industrialisation.”

This development follows the growing prominence of Nigeria's refining sector in the international energy markets since market disruption, when increased fuel exports from Nigeria helped strengthen domestic as well as global market resilience.

The IEA Governing Board’s decision builds on a strong history of engagement and collaboration between Nigeria and the IEA since 2014. In September 2025, the IEA, Nigeria’s Minister of Petroleum Resources and the African Energy Commission (AFREC) jointly convened a Regional Roundtable on "Turning Methane Pledges into Action” in Abuja, bringing together energy stakeholders from across the region to advance efforts to reduce methane emissions from the energy sector.

As an Association country, Nigeria and the IEA will work more closely across a wide range of energy issues, including on the Agency’s engagement in sub-Saharan Africa. Created in 2015, the IEA Association programme allows the Agency to deepen ties with its partner countries, bringing together major energy-producing and consuming countries from around the world. Nigeria joins a network of 13 other Association countries that work with the IEA to advance secure, affordable and sustainable energy systems worldwide. As a result of this expansion, the IEA Family’s share of global energy demand has increased from 40% in 2015 to over 80% today.

Dana Gas reports good operational results

Dana Gas PJSC, the Middle East’s regional private sector natural gas company, has announced encouraging results from its Egypt drilling programme, together with the receipt of additional payments totalling AED 79 million (US$21.5 million), marking the full settlement of all overdue receivables in Egypt and the continuation of payments by the Egyptian Government

The progress achieved in Egypt reflects the combination of an improved fiscal framework under the Consolidated Concession Agreement, constructive cooperation with the Egyptian Government, the closure of all overdue receivables, and Dana Gas' continued investment in its asset base. The full settlement of overdue receivables and continued timely payments have strengthened the business’ confidence in further investment in Egypt, alongside the Government’s ongoing efforts to encourage upstream investment, increase domestic gas production and reduce reliance on imported LNG.

Dana Gas has been actively executing its US$100mn investment programme, focused on stabilising production and restoring growth across its Nile Delta portfolio. The company delivered a return to production growth in the first quarter of 2026, with average production increasing 4% year-on-year to 13,060 boepd, marking the first increase in output since 2017.

In 2025, the company successfully drilled four wells and carried out workovers across three additional wells, adding approximately 30 MMscf/d of production and 36 Bcf of reserves.

More recent drilling activity has delivered results significantly above expectations. The latest well has identified an estimated 10 Bcf of gas reserves, significantly exceeding the original prognosis of 3 Bcf. The result opens up additional development and exploration opportunities across the licence area and has the potential to contribute approximately 12 Bcf of future gas resources once developed. Dana Gas plans to drill four further wells before the end of 2026.

Richard Hall, chief executive officer, said, “The Egyptian Government’s settlement of all outstanding receivables and the return to full, timely payments are important developments that give us greater confidence to continue investing in Egypt. Combined with the progress we have made operationally over recent months, this demonstrates the benefits of the investment programme that we continue to execute.

"We are already seeing tangible operational results. Production returned to growth in the first quarter for the first time since 2017, and our latest well results have exceeded expectations.

"The most recent well has identified significantly more gas resources than originally anticipated, highlighting both the quality of our acreage and the opportunities that remain across our portfolio. The result opens up additional development and exploration potential and further strengthens our confidence in the long-term outlook for the Egypt business."

Hall also acknowledged the support of the Ministry of Petroleum and Mineral Resources, EGPC and EGAS, and their efforts to encourage investors in the energy sector to increase domestic gas production and reduce country’s dependence on gas imports.

These efforts are paying off, with a number of discoveries being made recently. They include the oil and gas discovery by Agiba Petroleum Company, the joint venture between the Egyptian General Petroleum Corporation (EGPC) and Eni, in the Western Desert; a gas discovery made by Eni in the Nile Delta region, following its gas and condensate discovery in the Temsah concession in the Eastern Mediterranean; and a gas discovery by the USA's Apache, in collaboration with EGPC, in the Western Desert.