EXCLUSIVE DIGITALISATION OUTLOOK REPORT
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Exploration

The group’s overall production was only marginally above its target by just 53,000 bpd. (Image source: Rystad Energy)

While June output reflected improved production cut compliance in OPEC + group, Rystad Energy has observed that countries such as Sudan, South Sudan, Nigeria, Gabon, Equatorial Guinea, and Congo-Brazzaville, among others, continue to overcomply with the official cuts 

Congo has been vocal about its commitment to the organisation, stating the importance of nurturing a stable and prosperous energy future. 

Nigeria was one of the countries whose output recovery shot production rates from non-voluntary cutters to 3.044 mn bpd, which is 142,000 bpd higher than in May.

While Nigeria recovered, it still fell short of target (210,000 bpd in June), one of the primary reasons of undercompliance from 10 of the member countries, whose production this month was 3.435 mn bpd – 142,000 bpd higher than in May. 

Tension between Sudan and South Sudan has also impacted their production as June output in South Sudan was only 48,000 bpd – 76,000 bpd lower than its target. Sudan, on the other hand, produced only 31,000 bpd – 33,000 bpd below its quota.  

Strong compliance among member countries 

Despite increases from Nigeria (39,000 bpd) and Brunei (45,000 bpd), overall figures for June show that OPEC+ production dropped by 140,000 to 40.911 mn bpd, especially due to lower output in Russia (173,000 bpd) and the UAE (76,000 bpd).

The group’s overall production was only marginally above its target by just 53,000 bpd – its lowest level since the start of the year. This pointed to improved compliance as observed by Jorge León, senior vice president - oil market research, Rystad Energy, who said, “The recent improvement in compliance levels with the OPEC+ cuts show strong commitment and cohesion inside the group. It also shows that the compensation mechanism put into place is working. I expect to see strong compliance continuing in the coming months.” 

Compliance among the eight voluntary cutters – Oman, Kuwait, the UAE, Algeria, Saudi Arabia, Russia, Iraq and Kazakhstan – has improved.

Kurt Barrow, head of oil markets, S&P Global Commodity Insights observed last year that crude pricing in 2024 depends on OPEC+'s ability to follow through on voluntary production cuts. Maintaining discipline among member countries can be especially difficult due to strong non-OPEC+ supply growth and slowing oil demand growth.  

First production is targeted for 2028, with an estimated 70,000 barrels of oil per day. (Image source: SLB OneSubsea)

SLB, a global technology company, has announced the award of a contract by TotalEnergies to SLB OneSubsea, a joint venture between SLB, Aker Solutions and Subsea7

The project includes a 13-well subsea production system scope, including associated equipment and services, in the development of the Kaminho project, offshore Angola.

TotalEnergies will work with SLB OneSubsea to deliver a sustainable project that will improve production in Angola. During the Kaminho project’s first phase of development for the Cameia field, SLB OneSubsea will collaborate with TotalEnergies to deploy a highly configurable subsea production platform with standardised vertical monobore subsea tree, wellhead, and controls system. In a different set of Kaminho project contracts, the oil major has also hired Saipem for its extensive services, including operation and maintenance, FPSO, and subsea package delivery. 

Providing local support

The SLB OneSubsea venture will also play a significant role in supporting the Kaminho project locally in Angola for offshore operations including assembly, manufacturing of modules, installation, commissioning, and life-of-field services.“We are excited for this opportunity to unlock the large potential of the Kaminho project together with TotalEnergies,” commented Mads Hjelmeland, CEO of SLB OneSubsea. “Our collaborative contract model enables us to leverage both standardisation and highly configurable subsea production platforms, creating greater efficiencies and long-term value for this and future projects in Angola and around the world.”

With more than 10 million man-hours planned to deliver offshore operations and construction at local yards for the Kaminho project, TotalEnergies has acknowledged the establishment of a 'joint operating entity' with Sonangol. 

Drilling campaign will begin shortly. (Image source: Trident Energy)

Noble Venturer drill ship has arrived at Luba port to commence exploration activities on Trident-operated Block G that includes the Ceiba and Okume complex fields offshore Equatorial Guinea

Since the start, Trident has largely invested in production improvement initiatives in the region, including conversion of 15 gas lift wells to electrical submersible pumps (ESP). Now that the vessel has arrived, the drilling campaign will begin shortly, involving two infill wells located in water depths of 250m and 740m, before tackling an exploration well in Kosmos-operated Block S.

Unlocking potential 

Panoro Energy, which holds a 14.25% participating interest in Block G, is keen on tapping into Block S prospects as it can open a new play fairway with potentially very positive read across to the adjacent Block EG-01 where the company is an operator.  

The drillship contract was awarded to Noble Corporation for Noble Venturer on behalf of Trident Equatorial Guinea Inc and joint venture partners, Panoro, Kosmos Energy and GEPetrol in April.

François Raux, chief operating officer at Trident Energy ML said, "The arrival of the drill ship is a milestone that demonstrates our ability to restart the drilling programme very quickly. It affirms our commitment to unlock the potential of these fields and unleash further growth in Equatorial Guinea - safely, efficiently and responsibly. This will be a busy and exciting period for the company and look forward to getting underway.”

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