The company is eager to start drilling its next ARF well. (Image source: TAG Oil)

TAG Oil Ltd announced that it is continuing to produce oil and unload fracture fluid from the BED4-T100 (T100) horizontal well in the Badr-1 Oil Field in the Western Desert of Egypt, and has commenced shipping the crude oil for further treating and handling

The current T100 oil production is 400 barrels of oil per day, and associated gas-oil ratio is 150 standard cubic feet per barrel. Production rates represent approximately 130 barrels of oil per day per 100 meters of lateral horizontal length completed in the Abu-Roash “F” (“ARF”) unconventional tight, carbonate reservoir, which is better than analogous reservoirs, and aligned with performance simulation forecasts.

The newly installed jet pump system is designed to lift 600 barrels of fluid per day at peak efficiency and current fluid rates have fluctuated between 400 and 500 barrels per day. The company continues to optimize productivity of the T100 well by gradually increasing pump speed and reducing in-take pressure to reach the best stabilized production rate. The company has now sent crude oil shipments to two third-party receiving terminals in the Western Desert and are engaging in agreements and implementing infrastructure for regular shipments of ARF crude oil in the third quarter. Total oil produced from T100 to date is in excess of 10,000 barrels.

Toby Pierce, TAG Oil’s CEO, said “We are excited to be trucking oil to two nearby terminals for further treating and handling. With the encouraging results of this discovery well, we are eager to start drilling our next ARF well with a full 1,000-meter lateral section. We are also progressing various business development efforts to increase our footprint on this play in Egypt, and we have other ongoing initiatives in the broader Middle East region.”

The contracts were signed in ONHYM headquarters in Morocco. (Image source: ONHYM)

In line with the strategy to develop and promote Morocco's hydrocarbon resources, the general director of Office National des Hydrocarbures et des Mines (ONHYM), Amina Benkhadra, inked two reconnaissance contracts with Charles David Tautfest, president of Esso Exploration International Limited, a subsidiary of US oil major ExxonMobil Corporation 

Morocco's hydrocarbons strategy has seen consistent progress due to projects such as Loukos and Anchois, which can potentially become major supply sources for the region's gas market. The country is also working to produce the world's cheapest green hydrogen via a project called White Dunes, spearheaded by Falcon Capital Dakhla in collaboration with HDF Energy.

First exploration since 1999

Signed in ONHYM headquarters, the reconnaissance contracts mark ExxonMobil's first exploration activity in Morocco since 1999. The areas of operation to be covered are Safi-Essaouira and Agadir-Ifni offshore the cities of Safi, Essaouira, Agadir and Sidi Ifni. 

The Moroccan offshores are also known for prospective acreages such as the Lixus and Rissana licences which are being developed by Energean and Chariot. 

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.