Exploration

Permanently storing carbon dioxide generally has better sustainability credentials than utilising CO2. (Image source: Adobe Stock)

While covering all aspects and technologies of the CCUS value chain, a new report by IDTechEx titled 'Carbon Capture, Utilisation, and Storage (CCUS) Markets 2025-2045: Technologies, Market Forecasts, and Players' has interestingly noted how policymakers and key industrial players are focusing more on carbon dioxide storage, increasingly dropping the 'U' (utilisation) from discussions at conferences and expos

The report has found that by 2045, the world will be sequestering 1.6 gigatonnes per annum of CO2 underground, as dedicated geological storage of carbon dioxide will outpace enhanced oil recovery as the end result for CO2 capture. Major oil and gas players such as Shell, Equinor, and Chevron are leveraging decades of subsurface expertise to open-up storage in saline aquifers.

Permanently storing carbon dioxide generally has better sustainability credentials than utilising CO2. This is because permanently sequestering CO2 captured from an industrial process in dedicated underground storage is a net-zero process (or even net-negative for some CO2 sources). In contrast, captured CO2 returns to the atmosphere on short time scales for several CO2 utilisation applications, such as when a fuel synthesised from CO2 is combusted. Storing CO2 is therefore better suited to meeting emission reduction targets.

For industry stakeholders from the African energy market, CCS will be vital in attracting energy investments and eradicating energy poverty from the continent.

Decarbonising oil & gas assets

Fossil fuel infrastructure won’t disappear overnight, but existing assets can be decarbonised. New CCUS enhanced oil recovery projects are still expected in the future because the oil produced by this method has a much lower carbon footprint than typical oil extraction. Alternatively, drop-in replacements to fossil fuels can be made by utilising CO2, such as CO2-derived e-fuels. Such low-carbon fuels are seeing demand from the aviation and maritime sectors, where full electrification remains unfeasible for decarbonisation.

In the Middle East and North Africa (MENA) region, the Habshan Carbon Capture, Utilisation and Storage project is one of the largest carbon capture projects that will have the capacity to capture and permanently store 1.5 mn tonnes per annum (mtpa) of carbon dioxide (CO₂) within geological formations deep underground.

The company has secured two rig contracts. (Image source: Adobe Stock)

Shelf Drilling has secured a contract for the Shelf Drilling Mentor and a letter of award for the Shelf Drilling Achiever

While a US$60mn deal for Shelf Drilling Mentor will be covering 10 wells and an estimated duration of 450 days in direct continuation of the rig’s current campaign in Nigeria, Shelf Drilling Achiever will kick-start a multi-year campaign in October. 

Shelf Drilling has already been proactive in Nigeria since last year., and its Tenacious jack-up rig is currently deployed offshore Angola.

Strong rig market

Anticipating contract execution soon, the company is currently mobilising the Shelf Drilling Achiever rig to West Africa on a dry transport carrier to arrive by September. Concurrently, Shelf Drilling is mobilising the Main Pass IV rig using the same dry transport carrier, and this rig is also expected to commence operations before the end of 2024.

Greg O’Brien, CEO of Shelf Drilling, said, “We are very pleased with these two awards, which build on our leading position in West Africa and demonstrate the strength of this market. These awards further support our decision to mobilise the two rigs from the Middle East, and we are confident that operations for the Main Pass IV will also commence shortly after the rig’s arrival.”

Work over operations on the gas wells TE-6 and TE-7 have been completed. (Image source: Adobe Stock)

Transition energy company, Sound Energy, has confirmed the release and demobilisation of the Star Valley Rig 101 to the Tendrara Production Concession

The work over operations on the gas wells TE-6 and TE-7 have been fully completed. The wells are being prepared for long-term gas production into the micro-LNG plant currently under construction at site. The works were completed safely with no recordable incidents. The company acknowledged the well management team at Bedrock Drilling Ltd, subcontractors and suppliers, and the Office National des Hydrocarbures et des Mines (ONHYM) for their ongoing partnership and support.

The company has successfully replaced the tubing head spool and ran new corrosion resistant completion tubing into TE-7. The rig will be stacked at the TE-7 site, at no on-going cost to the company.

PEL 93 is more than 10 times larger than the company's Alaskan portfolio. (Image source: Adobe Stock)

88 Energy Limited has announced financial results for the half-year ending 30 June 2024

In February 2024, the company farmed-in and subsequently received transfer approval for a 20% working interest in Petroleum Exploration Licence (PEL 93) onshore Namibia. Approved by the Namibian Ministry of Mines and Energy, the transfer was facilitated by operator Monitor Exploration Limited as part of Stage 1 of the farm-in agreement. Monitor now holds a 55% WI with the remaining 25% shared across local entities, Legend Oil Namibia Pty Ltd and NAMCOR.

A three-stage farm-in agreement (FOA) for up to a 45% non-operated working interest in PEL 93 covering 18,500 sq km of underexplored acreage within the Owambo Basin in Namibia was initiated in November 2023 via the company's wholly owned Namibian subsidiary.

The company has identified Namibia as one of the last remaining under-explored onshore frontier basins and one of the world's most prospective new exploration zones. It has noted that PEL 93 is more than 10 times larger than its Alaskan portfolio and more than 70 times larger than Project Phoenix in Alaska.

Recent drilling results on nearby acreage has highlighted the potential of a new and underexplored conventional oil and gas play in the Damara Fold belt, referred to as the Damara Play. It is currently the subject of exploration drilling by ReconAfrica in their nearby PEL 73 block. Historical assessment utilised a combination of techniques and interpretation of legacy data to identify the Owambo Basin, as having significant exploration potential. Monitor utilised a range of geophysical and geochemical techniques to assess and validate the significant potential of the acreage since award of PEL 93 in 2018, identifying 10 independent structural closures from airborne geophysical methods and partly verified these using existing 2D seismic coverage.

In May 2024, the Company announced that Polaris Natural Resources Development Ltd (Polaris) was awarded, the 2D seismic acquisition program contract. Polaris mobilised vibroseis units and recording equipment to location in late June 2024 and the program was completed in July 2024. The fully funded 2D Seismic acquisition program acquired ~200-line km of 2D data with data processing now underway and anticipated to be finalised in Q4 2024.

Results of the new 2D seismic acquisition will be integrated with existing historical exploration data to refine current prospect interpretation. The results may validate up to 10 independent structural closures, maiden certified prospective resource estimate, and identify future potential drilling locations targeting the Damara play.