Exploration

With this acquisition, UEG's current production will reach 39,000 boepd. (Image source: Adobe Stock)

To further expand its footprint in Egypt since Kuwait Energy acquisition in 2019, United Energy Group has signed a sale and purchase agreement with Apex International Energy LP to acquire its entire upstream assets via United Energy (MENA) Limited

A significant producer in the Western Desert of Egypt, Apex's area of operations spanned beyond 3,500 sq km, including eight onshore concessions. Its gross production count for 2024 stands at 11,000 barrels of oil equivalent per day (boepd). 

Apex had acquired six of these concessions in 2023 from IEOC Production, a unit of Eni. It included IEOC’s interests in the Ras Qattara, West El Razzak, East Kanayis, and the West Abu Gharadig concessions. The company had made the acquisition to see its first gas production, and become a front runner in the booming Egyptian natural gas industry. 

With this acquisition, UEG's current production count of 22,000 boepd will shoot up to 39,000 boepd, adding to its existing interests in five concessions. Besides production optimisation, this move also highlights the company's focus on asset integration to have greater control over field development before exploration. Enhanced oil recovery with strong technical support will be the company's watchword to chase growth potential in its Egyptian acreage. The acquisition will allow UEG to advance regional integration to solidify its global energy supply chain, which will also benefit Egypt's energy industry.

With the merger agreements now approved by the Egyptian Cabinet, UEG is looking forward to better fiscal terms, increased investment, greater economic potential and long-term value creation. 

Extensive deepwater data from PGS

Egypt continues to be a coveted exploration spot globally, especially to harness its gas resources. Last year, geoscience data provider PGS had released 3D seismic data over the deepwater area between the Nile delta and the Herodotus Basin as part of its EGY23 Merneith & Luxor survey. 

Acquired with Ramform vessels and GeoStreamer broadband technology, the 6,175 sq km EGY23 Merneith & Luxor survey draws on the expertise of PGS's partners the Egyptian Natural Gas Holding Company (EGAS). The GeoStreamer-acquired data covers both low and high-frequency information that can make a huge difference in interpreting structures and analysing rock property. 

The survey cracked into an underexplored and unlicensed deepwater area and extracted 3D data from the region, marking a significant upgrade from the currently available 2D data.

A Messinian evaporite layer of variable thickness extends across most of the area. The survey is tied to the Kiwi-1 well, one of the few wells in this deepwater area, and primary targets are likely to be presalt Oligo-Miocene structures with clastic reservoirs.

Africa will see significant frontier drilling this year. (Image source: Westwood)

Energy intelligence provider, Westwood, has identified Namibia's Orange Basin to remain the most anticipated region as high-impact exploration continues in 2025 

The research indicates this year to be stable in terms of global high-impact exploration drilling, with 65-75 wells expected to be completed, compared to the 69 completed in 2024.

Of the 21 frontier wells that are expected this year, a considerable number will come from Africa. With 19 such wells drilled in 2024, frontier drilling is set to see a slight increase in 2025. 

Africa is predicted to see heightened drilling activity, with 14 wells lined up for the year. Around 7-10 wells that will be drilled in the Orange Basin in 2025 will seal the fate for the region which has been generating huge global anticipation since the Venus discovery in 2022. Some of the key wells from the region include Olympe-1X and Sagittarius-1X, among others. 

While Chevron stands second right after QatarEnergy as the most active explorer for the year, targetting seven wells, it was off to a bumpy start with the first two wells – Egypt (Khendjer) and Namibia (Kapana) – turning up dry holes. 

Shell, too, seemed to have little luck in petroleum exploration license 39 (PEL39) in Orange Basin, which the company declared a write down of approximately US$400mn. 'While we recognise that extracting the discovered resources presents challenges, the extensive data collected shows that there remain opportunities. Together with our partners, we are continuing to explore potential commercial pathways to development, while actively looking for further exploration opportunities in Namibia', read a statement from the company.

The back-to-back unsuccessful experiences in the Orange Basin by two majors have left the rest of the players in the region apprehensive, awaiting the next turn of events with bated breath. 

Growing interests from global exploration and production companies, however, have set off a whole new oil & gas ecosystem in the region, with tech giants Halliburton and Baker Hughes opening facilities, and high stakes logistics contracts coming into effect.

Key wells to watch

In other parts of Africa, Azule Energy will be drilling the Kianda-1 well in the outboard area of the Congo Basin, Angola in the second half of the year, with other potentially high impact wells being drilled offshore in the Namibe, Rio Muni and Tano basins, as well as potential frontier onshore tests in the Cabora Bassa and Kavango basins. 

Elektra is currently drilling, and testing a significant extension of the Nile Delta Miocene play and Pegasus is testing the emerging Cretaceous carbonate play. Matsola offshore Libya, which lies at an extension of the Sirte Basin, is also an important well that will undergo testing.

Westwood is closely watching the developments in Herodotus Basin offshore Egypt as well. 

The upcoming licensing round will promote new acreage. (Image source: Adobe Stock)

Equatorial Guinea is preparing to open doors to investors in home and abroad as it is working on launching a new licensing round this year, with a special focus on upstream

According to the Equatorial Guinea's Minister of Mines and Hydrocarbons, Antonio Oburu Ondo, the Ministry is particularly enthusiastic about the country's offshore acreage, which they are looking to develop in collaboration with Cameroon. These include the Yoyo and Yolanda fields, the Etinde gas field and the Camen and Diega fields, which lies in the maritime borders of these two countries. 

The upcoming licensing round will promote new acreage, including Block H and Block 02, previously operated by Atlas Oranto Petroleum and PanAtlantic Energy (Vanco Energy). 

Last time the country had held a licensing round was in 2019, when 27 blocks were offered. It saw participation from 53 companies, with 17 bids submitted. 

Equatorial Guinea continues to deliver attractive exploration opportunities, with elements of an active petroleum system found in the Upper Albian region of one of the wells from Block S a couple of months back. In Block G, Trident Energy remains ahead of schedule following a production optimisation programme on Okume and Ceiba infill wells, boosting yield by more than 5,000 barrels of oil per day. 

International energy services providers are increasingly operating in the region, with Petrofac being one of the latest examples. GEPetrol signed a US$350mn technical services contract with the company in April last year to develop the Zafiro field in Block B, which is known to be the country's largest. The five-year contract includes support services for onshore bases, a floating production storage and offloading (FPSO) vessel and platform for the operator. It will encompass a holistic asset solution, including operations, maintenance, asset integrity, integrity management, marine services, well engineering, project delivery and supply chain services. 

GEPetrol has a multi-phase development plan with the Zafiro field, with Phase 1 to reconnect selected wells that were previously produced via tiebacks to the Zafiro Producer floating production unit. Phase 2 is supposed to run in parallel, with production and cost optimisation drives, followed by a full-scale redevelopment of the field as part of Phase 3. 

Petrocfac is also providing a master service agreement for Marathon Oil to support key onshore and offshore assets, including five offshore steel jacket facilities in the Alba Field and the Alba Gas Plant onshore. The Alba field is part of Equatorial Guinea's Gas Mega Hub project, in which Chevron is a key player. Processing gas from Alba will mark the second phase of the project, while Phase III will involve gas integration from the Aseng field. 

Chevron's presence in the Equatorial Guinea also includes production sharing contracts (PSCs) in Blocks EG-06 and EG-11, which are an extension of its existing interests in the Alen, Aseng and Yolanda fields.

Vaalco Energy, on the other hand, is focusing on exploration and production from Block P, working on a plan of development following the finalisation of a PSC for the asset in August.

68% of methane emissions stem from upstream facilities. (Image source: Adobe Stock)

The energy sector presents the largest and most cost-effective opportunity for methane emissions reduction, with 68% of methane emissions stemming from upstream facilities, according to Momentick’s 2024 Methane Emissions Report

Momentick, a leading emissions intelligence company, which leverages the power of hyper and multispectral satellites to monitor GHG emissions on a planetary scale, detected emissions at 17% of the sites analysed, measuring a staggering 899 million tons of CO2-equivalent emissions, with 10% of assets accounting for 50% of the emissions detected. The highest concentration of methane leaks was detected in Asia, Africa, and North America, while Europe recorded the fewest leaks.

Methane is a colourless, odourless gas, which requires highly sensitive instruments for detection. Methane leaks can manifest as both diffuse, small emissions and large, concentrated bursts, complicating the consistent identification of leaks. Environmental factors, such as wind, temperature, and terrain, further hinder accurate detection and measurement, as methane plumes disperse quickly, making it difficult to trace emissions back to their sources.

Unlike CO2, methane emission reductions have an almost immediate effect on slowing global warming as methane has a relatively short atmospheric lifespan compared to CO2. By urgently tackling methane emissions, the rate of warming could be slowed by as much as 30% before mid-century, according to Momentick.

The International Energy Agency (IEA) estimates that over 75% of the methane emissions in the oil and gas sector could be reduced today using existing technologies, while research conducted by JP Morgan has found that methane abatement is a cost-effective investment, revealing that up to 70% of the expenses associated with monitoring solutions can be offset by keeping methane in the pipe.

Addressing the issue of poor emissions data

The Momentick report notes that evolving regulations and financial incentives have highlighted the critical need to address the longstanding issue of poor emissions data, with accurate and reliable information needed for decision-makers to implement effective methane abatement strategies. The growing need for accurate and actionable emissions data is driving the expansion of space-based methane monitoring satellites, while advanced algorithmic software solutions are leveraging Earth observation satellites to enhance commercial applications and precise point-source methane detection. By analysing historical data captured by these satellites, researchers and decision-makers can track emission trends over time, gaining deeper insights for regulatory planning and climate action. Additionally, with cutting-edge developments in AI, satellite-based emissions data can now be processed in near real-time, delivering timely and actionable insights.

“2024 was an important year on the path to curbing methane emissions,” said Daniel Kashmir, CEO of Momentick in his Foreword to the report. “Governments committed billions to technological upgrades and research, while oil and gas operators accelerated progress towards their net-zero goals. Collaborating with a wide variety of stakeholders across the energy sector, our team at Momentick encountered a strong commitment to action and eagerness to implement our emissions intelligence technology over the last year.

“We envision satellite-based emissions monitoring becoming central to corporate sustainability strategies during the energy transition. The integration of GHG monitoring and MRV practices will become a standard component of operations across industries. Backed by evolving regulations and growing adoption, these technologies will make net-zero goals truly achievable.”