Ahead of target
Entitlement production from Algeria for the full year 2016
was 35,000 boepd compared to 34,000 boepd in 2015. The production was slightly above target for the full year.
Two routes forward
Maersk Oil is pursuing cross block development opportunities as well as exploring fiscal options with the government in order to find a viable solution for the Chissonga project. Reduction of project staff in Angola, the US and HQ has led to cost reductions.
Maersk Oil continues to evaluate the licences Wahoo and Itaipu with its partners.
Tyra SE on track to be under budget
The Danish Business Unit delivered entitlement production of 55,000 boepd in 2016 (60,000 in 2015) meeting expectations. The Tyra facilities are approaching the end of their operational life due to a combination of more than 30 years of production and subsidence of the underground. Discussions with the Danish government on fiscal structures have not yet led to an economically viable solution for continued operations after 2018. The new Tyra South East wells have been producing well, and seven out of the nine agreed wells have been completed.
A strong start to 2017
Average entitlement production in 2016 was 6,000 boepd (6,000 in 2015). New well tie-ins and the addition of a second workover rig have led to a production recovery, with end of year rates in excess of forecast giving a strong start to 2017. Safety performance remained strong, with the best performance in 5 years achieved.
The Dunga Project activities continue on schedule, or ahead of schedule for the well tie-ins. The tender for water injection plant was finalised, with responses expected early Q1 2017.
Recoverable oil discovered
The first well of a four well drilling programme, Erut-1, discovered a gross oil interval in the Northern part of the South Lokichar basin of 55 metres with 25 metres of net oil pay at a depth of 700 metres. The overall oil column for the field is considered to be 100 to 125 metres and samples taken indicate the presence of recoverable oil. The well result has de-risked multiple prospects in the area which will now be considered in the future exploration and appraisal drilling programme.
New wells to boost production
Average gross production from the Swara Tika field in 2016 was 4,900 bopd, with a corresponding Maersk Oil average annual entitlement production of ca. 550 bopd. In January 2017, the total production from the Swara Tika field in the Sarsang Production Sharing Contract reached ca. 13,000 bopd, following the successful drilling and completion of a side-track of the Swara Tika ST-4 development well, which was tied-back as a new oil producer. Development activities are ongoing in 2017, with the view to further increasing production capacity.
Phase one Johan Sverdrup on plan
Overall progress on Johan Sverdrup Phase 1 execution is on plan with ca. 36% complete as per end 2016. Fabrication and construction activities continue for all major contracts. The Operator continues to take proactive actions to mitigate risks to ongoing construction activities and the schedule. Pre-drilling campaign of 8 oil producers was completed in November, 8 months ahead of schedule and below budget. Four additional pilot/appraisal wells have been drilled before start-up of 10 well pre-drilled water injector campaign on plan.
Production increase to 134,000 boepd
Maersk Oil’s entitlement production in 2016 was 134,000 boepd – slightly above the 131,000 boepd in 2015.The transition team established in Maersk Oil Qatar is working closely with the North Oil Company (new joint venture between Total and Qatar Petroleum) to ensure a safe transition of the activities.
Flyndre first oil is expected in Q2 2017
The 2016 entitlement production was 74,000 boepd
(71,000 in 2015) in line with expectations.
Following the start of drilling operations at Culzean from late September, performance has been steady with Non Productive Time being well below that expected of a new build rig. In Singapore the topsides decks are complete and ready for installation of equipment. The keel laying of the FSO took place during the period as planned. The processing platform and accommodation platform jackets are on track for installation during summer 2017.
US GULF OF MEXICO
High facility up-time
2016 entitlement production was 9,000 boepd (7,000 boepd
in 2015) at Jack, ahead of the target due to good well performance and high facility up-time. Drilling of the last of the four Phase 1 production wells has now been completed.