Chevron is excited about its portfolio in the Eastern Mediterranean. (Image source: Adobe Stock)

With an aim to advance reach in the West Star block, US energy major Chevron has initiated talks with the Egyptian government

The area lies in the south of ExxonMobil’s major Cairo and Masry blocks in the deep offshore near the Cyprus border.

This is an addition to Chevron's earlier bid for two out of the 12 blocks that the Egyptian Natural Gas Holding Company (EGAS) had opened for investors. Chevron is awaiting finalisation of the awards in the next few months.

Following a US$5bn acquisition of Noble Energy in 2020, Chevron has been strengthening its footprint in the East Mediterranean, undeterred by the current industry turbulences.  

“We are excited about our entire portfolio in the Eastern Mediterranean,” believes CEO Mike Wirth. “We have got some good exploration acreage in the offshore Egypt area that we brought to the table as well and the expectation is for some exploration wells there in the coming couple of years,” he said.

Chevron is willing to invest around US$$120mn in the West Star concession in the northeast Mediterranean following approval from the Ministry of Petroleum.

Each block revealed 10 billion barrels of crude. (Image source: Adobe Stock)

Turkey has recovered commercially viable hydrocarbons from two out of the three exploration blocks that it operates in Somalia 

Promising 10 billion barrels of crude from each of the blocks, the discovery puts the East African country in line with the globally reputed, resources-rich West African regions.

While preliminary drilling is completed and geological surveys conducted in both the blocks, the third block is still under exploration. Turkey will be doing laboratory analysis to determine the quality and grade of the oil from the third block, presumably by August. 

Turkey has got itself a sweet deal with Somalia agreeing to 90% stake in revenues for Ankara from offshore oil production. While it has drawn considerable scepticism, Somalia's President Hassan Sheikh Mohamud said that "This is not about favoring Turkey." He added, "Rather, Turkey is the first to step up and show real commitment to invest."

The Capricornus 1-X well falls under PEL 85. (Image source; Adobe Stock)

Rhino Resources has found good petrophysical properties minus water contact from Capricornus 1-X exploration well in Namibia’s Orange Basin

Spudded with the Noble Venturer drillship, the Lower Cretaceous target was reached at total depth, revealing 38m of net pay. Hydrocarbon samples and sidewell cores were collected through intensive wireline logging operations. The rig will now be released following temporary plugging and abandonment of the well. 

A production test was also conducted across the light oil-bearing reservoir. The well achieved a surface-constrained flow rate in excess of 11,000 stb/d on a 40/64” choke. The light 37° API oil exhibited limited associated gas with less than 2% CO2 and no hydrogen sulphide. Fluid samples collected from the test will be put to laboratory studies.

The Capricornus 1-X that falls under Petroleum Exploration License 85 is operated by Rhino Resources with a working interest of 42.5%. Co-venturers are Azule Energy (42.5%), Namcor (10%), and Korres Investments (5%) – bp and Eni each hold a 50% interest in Azule Energy.

Block 1 spreads across 19,929 sq km offshore South Africa. (Image source: Eco Atlantic)

Eco (Atlantic) Oil & Gas Ltd has acquired from the Petroleum Agency South Africa (PASA) a substantial volume of 3D and 2D legacy data on Block 1 offshore South Africa

These high resolution and processing-ready data include two 3D seismic surveys totalling 3,500 sq km, 20,000+ line kms of 2D seismic, and logs for key exploration wells AF-1, AO-1, and AE-1. All these wells are drilled, with AF-1 confirming gas presence at flow rates of 32.4mn standard cu/ft per day, AE-1 indicating oil and gas shows, and AO-1 providing key stratigraphic data and reservoir markers.

The seismic surveys give a holistic understanding of key structural and stratigraphic targets, from inboard gas-prone zones to outboard oil-charged systems.

Eco is in the final stages of the formal acquisition of 75% working interest and operatorship in Block 1 through its wholly owned subsidiary Azinam South Africa Limited as per a farm-in agreement signed with Tosaco Energy.

Block 1 spreads across 19,929 sq km offshore South Africa, directly abutting the Namibian border. The block extends from the shore to the continental shelf, some 175 km offshore then to ~263 km out into deep water, encompassing a full margin transect from the shelf to deep water channel and fan complexes.

Water depths range from shallow shelf (~200 m) to deepwater (~1,000 m), enabling a full spectrum of play types. The acreage is considered geologically analogous to the Kudu gas field to the north and sits immediately south of recent discoveries made by Galp Energia (Mopane), Shell (Graff, La Rona), TotalEnergies (Venus), and Rhino Resources (Capricornus 1-X light oil discovery).

Potential partnership opportunities

Colin Kinley, co-founder and chief operating officer of Eco Atlantic, said, "The Orange Basin has rapidly emerged as one of the most compelling hydrocarbon fairways globally, with recent multi-billion-barrel discoveries adjacent in Namibia extending directly into the geological runway of Block 1. This asset provides Eco with material exposure across a full-margin basin play-ranging from proven, gas-rich inboard sections to oil-prone targets in the deepwater and ultra-deepwater domain.

"This strategic acquisition of high-quality 2D and 3D seismic, along with historic well logs deliver massive value to the company. This acquisition is currently conservatively estimated to replace US$50-60mn in acquisition costs required for new exploration. The data quality enables us to aggressively pursue subsurface interpretation and prospect ranking immediately. This dataset provides a robust foundation for accelerated prospect maturation and the opportunity to consider potential farm-out and partnership conversations.

"In parallel with our South African work programme, we are actively negotiating farm-out and drilling participation opportunities on our Orinduik Block in Guyana. We will update the market as those discussions progress. Our Walvis Basin acreage in Namibia, particularly the ultra-deepwater blocks, is also receiving strong interest as Orange Basin real estate becomes increasingly competitive. We continue to engage with industry and government stakeholders to advance partnerships across these core positions. Finally, our interest in Blocks 3B/4B in South Africa-now operated by TotalEnergies-offers unique upside potential, both on completion payment of farm down costs to Eco and importantly drilling the significant resource opportunity assessed on the block."