Ikke helt rett frem for Shell i Orange Basin.

« Shell has 'no shortage' of oil and gas in its Namibia discoveries, but questions remain over 'mobility', says chief executive
Wael Sawan cautions that supermajor's Orange basin finds are complex, with work underway to see if they can be extracted on a commercial basis

Updated 2 August 2024, 14:03
Shell's cluster of deepwater discoveries in Namibia's prolific Orange basin are geologically complex and a commercial development is not straightforward, according to chief executive Wael Sawan.

The supermajor has made five discoveries in Petroleum Exploration Licence 83 — Enigma, Jonker, Graff, La Rona and Lesedi — and drilled only one unsuccessful exploration well.

However, compared to TotalEnergies' Venus and Mangetti discoveries to the west and Galp Energia's huge Mopane find to the north, which appear to lie in Orange basin sweet spots, Shell's quintet of discoveries seem to have more sub-surface challenges, an issue Sawan has alluded to previously.«

https://www.upstreamonline.com/exploration/shell-has-no-shortage-of-oil-and-gas-in-its-namibia-discoveries-but-questions-remain-over-mobility-says-chief-executive/2-1-1686135

Det var så langt jeg fikk lest. Har neppe stor betydning da det jo er Mopane som ligger klart nærmest Kudu.

Kan være tilbøyelig til å være enig, men tror du ikke disse to ekstrabrønnene hadde blitt boret uansett?

Skal ikke mase mer om dette. Det som har skjedd har skjedd og vi får se fremover. Hva som blir løsningen på Dussafu skal bli spennende å se. De har jo tre funn til pluss stor sannsynlighet for flere funn. Blir det treff på Bourdon så vil man nok ikke vente på decline før utvikling av feltet. Det er vel ikke usannsynlig at det etterhvert blir en FPSO til. Eller at Adolo blir byttet ut med en med større kapasitet. Panoro har også assets i Ekvatorial Guinea som du sikkert vet. Der har operatøren en FPSO med kapasitet på 160 000 bopd. Bare for sammenligningen skyld.

Det å ha Norve lengre er ikke sikkert de har tapt på.

Tross alt så har de boret 2 ekstra brønner mens de ventet, begge med funn og dermed 2 ekstra produksjons rønner.

Hvilket igjen betyr at de trolig ikke trenger riggen tilbake i 25, og kanskje ikke i 26 heller..

Mest sannsynlig betyr dette 2 år med full produksjon på Adolo, og trolig 400 musd per år i fcf per år.
Noe som kommer godt med til utbygging på Golfinho, Maromba og Kudu boringer.

Baker Hugnes would not in million years sign a contract which would expose them to any costs like that in any eventuality. Never ever. Nobody would.

ok, da bør de ha 3 stykker installert til 2 kvartals presentasjonen.

Det kan jo være at de nye oppnår høyere flow enn de konvensjonelle, men det vet jeg ikke noe om.

Du kan forøvrig trekke fra en brønn. Det er installert konvensjonell ESP på brønn nr. 2 på Hibiscus South.

Fra BWE sin oppdatering nå nylig.

«The DHBSM-2H development well has completed drilling and has been completed with the first conventional ESP system»

Hvis de klarer å installere 1 konvensjonell ESP pr 14 dag, så vil de rapportere 2 installerte ESP'er på 2 kvartal presentasjonen og da er de ferdig med å installere alle
8 i månedsskifte november/ desember. Håper de får det til denne gangen.

Hvorfor ledelsen går får helt nye ESP'er, er svært dristig valg da det viktigste er å sikre at en når maks produksjon på kortest mulig tid og til lavest kostnad med en løsning som sikrer høy regularitet av oljeproduksjonen. Hvorfor de tok dette valget har ikke BWE sagt noe om. Kanskje det var en veltalende selger i Baker Hughes som overbeviste dem at den nye typen ESP var best. Det er nok mange nå som avventer rapport med forklaring hvorforde ikke virker som de skal.. Håper BWE tar fighten med å få best mulig erstatning for å få tilbake de ekstra utgiftene de har hatt.

Burde de ikke dekke riggkostander i tillegg? BWE har jo grunnet feil på BH’s ESPer måtte ha rigg x 2. enig angående tapt/forsinket produksjon/inntekt, men rigg kost burde BH ta.

Takk for det. Får de nye ESPer så er jo det klart bedre enn ingenting. Når det gjelder selve produksjonen så er den jo ikke direkte tapt. Olja er der uansett, men å leie Norve så lang tid er selvsagt et tap.

Time will tell.

En ting er å levere garanti på levert utstyr, noe helt annet er å svare økonomisk for følge utgifter.

For å ta ditt eksempel: Du vil få ny / reparert bil, men bilselgeren vil ikke dekke dine tap som følge av at du mistet et viktig møte der milliardkontrakten gikk til en annen fordi du ikke møtte opp.

På samme måte vil BH trolig erstatte esp'ene, men de vil vanligvis ikke svare for følgekostnadene

Dette er en av hovedgrunnene til at oljeindustrien er svært konservativ i valg av utstyr. Særlig i produksjonslinjen.

Selvsagt utvikles det nytt utstyr, og ideen med esp der deler kan byttes ut uten rigg er god.
Men her tror jeg utstyret ikke er godt nok testet / erfaringsgrunnlaget er for lavt, så BWE burde trolig ikke valgt denne løsningen.

BWE har nok en god sak på å få byttet selve esp'ene, men jeg tror nok det stopper der.

Synes det er naturlig at BWE krever en erstatning fra Baker Hughes. De har kjøpt x antall ESPer som ikke kan brukes. Dette har ført til tapt fortjeneste og store kostnader. Spesielt når det gjelder rigg.

Arnet har blitt bedt om en kommentar til dette på q/a seksjonen på minst en av q-presentasjone, men han er veldig vag. Svaret var vel bare at de nå hadde fullt fokus på å fikse problemene.

I mellomtiden har Baker Hughes levert et kjempegodt Q2 resultat og de renner over av penger. Disse ESP-ene er bare en dråpe i havet for dem.

« Across both segments, we delivered outstanding second-quarter results, leading to a 25% year-over-year increase in total company adjusted EBITDA and 46% growth in adjusted EPS. Total company adjusted EBITDA margins increased almost 150 basis points year-over-year to 15.8%. This is a testament to the enhanced operational rigor that is being exercised across our IET and OFSE segments."

"We continued the positive trend of returning meaningful cash to shareholders. In the quarter, we paid dividends of $209 million and repurchased $166 million of shares, remaining on course to return 60% - 80% of free cash flow to our shareholders."

"Our exceptional second-quarter results are a credit to the hard work and dedication of the employees at Baker Hughes; I recognize this and express my sincere thanks to all of you," concluded Simonelli.»

https://investors.bakerhughes.com/news-releases/news-release-details/baker-hughes-company-announces-second-quarter-2024-results

Hadde jeg kjøpt en bil som gikk i stykker etter noen måneder ville jeg selvsagt krevd erstatning for det. Hvorfor skal det være annerledes her? Eller har BWE installert dem eller brukt dem på en måte som er i strid med forutsetningene?

Noen med noe syn på dette?

De bør jo være ferdig noe før.

Flytting av Norve og boring av Bourdon antar jeg vil ta ca 2 mnd, så begynnelsen av desember bør de være ferdig med alle brønnene.

Og jeg kan ikke se at de trenger alle 8 heller for å nå 40k.

Tortue produserer vel fortsatt rundt 9-10k, så de trenger ca 30k fra Hibiscus/Ruche.
Dvs 5-6 brønner.

Senest oktober er min gjetning, men blir ikke overrasket om det blir tidligere enn det også.

DNB skriver i sin siste oppdaterte analyse:

Line of sight to Hibiscus plateau production. With the delivery of the new
conventional ESP systems and extension of the drilling rig contract until February 2025,
the company is set to complete the workover of eight production wells at Hibiscus,
probably reaching plateau production as we move into 2025.

Det er det samme som jeg tenker. Håper de klarer det noe før.

Wake up call…. Total e trekker seg ut fra sør Africa og går all in i……?

Litt overraskende er det nå. Petrobas har hatt som policy å kun operere i Amerika. Meg bekjent produserer de kun fra Brasil og Mexicogulfen. Dette har vært deres policy. De har ikke hatt noen virksomhet i Africa på tross av at også Angola og Mosambik er tidligere portugisiske kolonier med olje.

Men jeg ser at Galp og Petrobras har jobbet tett sammen i Brasil over mange år. Det kan jo være medvirkende. De har jo også uttalt frustrasjon ang. miljøkrav i Brasil. Det var nok lettere under Bolsonaro enn Lula.

Hvorfor alt dette om Total Energy? De er jo i Orange Basin i Namibia for lengst. De gjorde sitt funn av Venus like etter at Shell fant Graff.

Galp er vell portugisisk, og Brasil tidligere koloni, med samme språk, og ekstremt tette økonomiske bånd, så dette er et lysår fra overraskende. Det var minst 4 major budgivere , så dette lukter elefant suksess. Total E trekker seg ut fra sine glass-felt/planer i Sør Afrika, og hvor satser de da……

Upstream 1.8: « Galp wants big seismic shoot over massive Mopane discovery to cover Shell and Rhino acreage
Portuguese company's plan for major 3D survey indicates freshly discovered Mopane play extends south.
Galp Energia is seeking environmental clearance from Namibia’s authorities for a major 3D seismic shoot over its huge Mopane oil and gas discovery in Petroleum Exploration Licence 83, that would also extend into acreage operated by Shell and Rhino Resources.»

Upstream 29.7.: « ‘Too challenging’: TotalEnergies quits 4.5 trillion cubic foot South Africa gas project
Supermajor has exited the big $3 billion Luiperd and Brulpadda project due to commercial challenges
France’s TotalEnergies has decided to exit a gas-rich block offshore South Africa in a major blow to the government of national unity because the Brulpadda and Luiperd discoveries were "too challenging" to develop.

In a statement on Monday, TotalEnergies said it is exiting Block 11B/12B, following the earlier revelation that Canadian Natural Resources was also on the way out.

TotalEnergies, through its local arm TotalEnergies EP South Africa, holds a 45% interest in the block, while Canadian Natural holds 20%.

It is now likely that Qatar Energies will also exit Block 11B/12B, leaving local player Main Street - in which Africa Energy Corporation has an indirect interest - as the only stakeholder.

The supermajor said it is quitting because it would be “too challenging to develop and monetise” the gas resource for the domestic market.

TotalEnergies’ development plan was to pipe gas from the two deepwater finds to the Mossel Bay gas-to-liquids (GTL) plant — operated by state oil company PetroSA — that has been idle for some years due to lack of feedstock.

Additional volumes were then expected to feed an existing power station converted from handling diesel and, later on, to a new gas-fired power station.

However, wrangling over gas prices with government and PetroSA's decision to engage with Russia's sanctioned Gazprombank to revitalise the GTL plant, are understood to have been key factors behind the departure of CNR, and the exit of TotalEnergies.

Meanwhile, the company is also exiting Block 5/6/7 offshore Cape Town, high-risk exploration acreage where its holds a 40% stake and which has been a target for domestic anti-fossil fuel campaigners.

«Galp wants big seismic shoot over massive Mopane discovery to cover Shell and Rhino acreage
Portuguese company's plan for major 3D survey indicates freshly discovered Mopane play extends south

Published 1 August 2024, 12:15
Galp Energia is seeking environmental clearance from Namibia’s authorities for a major 3D seismic shoot over its huge Mopane oil and gas discovery in Petroleum Exploration Licence 83, that would also extend into acreage operated by Shell and Rhino Resources.

Galp said it has discovered in-place resources of 10 billion barrels of oil equivalent at Mopane, after recently competing two exploration wells, one of which was successfully flow tested.

The company plans to fire up a four-well appraisal drilling programme later this year to better define the resources it has discovered and boost its understanding of the sub-surface.

https://www.upstreamonline.com/exploration/galp-wants-big-seismic-shoot-over-massive-mopane-discovery-to-cover-shell-and-rhino-acreage/2-1-1685856

BWE har tatt en kalkulert risiko her og oppsiden kan bli betydelig.

Det er mye bedre sjanse for drivverdig oljefunn enn på kjøp av en Lottobong og vinne førstepremien der.

Resultatet kommer i oktober så det blir noen måneder å vente.

Forventningene til funn vil øke framover til resultatet kommer.

Tja. Ser på dette mer som en lottokupong enn noe annet

BW Energy completes farm-in and acquisition of securities of Reconnaissance Energy

BW Energy completes farm-in and acquisition of securities of Reconnaissance
Energy

(With reference to stock exchange release dated 17 July 2024 regarding Letter
Agreement to acquire shares in Reconnaissance Energy Africa Ltd. and 20%
interest in onshore exploration license PEL 73 in Namibia)

BW Energy Services Limited, a wholly owned subsidiary of BW Energy Limited ("BW
Energy"), has acquired an aggregate of 17,600,000 common shares ("Common
Shares") and 17,600,000 common share purchase warrants ("Warrants" and together
with the Common Shares ("Units")) of Reconnaissance Energy Africa Ltd. (the
"Company").

The Units were acquired at a purchase price of CAD1.25 per Unit, for an
aggregate purchase price of CAD 22 million or approximately USD 16
million pursuant to the previously announced offering (the "Offering") of Units
by the Company.. Each Unit is comprised of one Common Share and one Warrant,
with each Warrant entitling the holder thereof to purchase one Common Share at a
price of CAD 1.75 within 24 months following the closing of the Offering.

Following the closing of the Offering, BW Energy Services Limited owns
approximately 6.6% of the outstanding Common Shares, not including the
Warrants.

Consequently, BW Energy Rundu Limited, a wholly owned subsidiary of BW Energy,
has entered into a farm-in agreement with Renaissance Energy Namibia Pty Ltd., a
wholly owned subsidiary of the Company, providing for the terms of a farm-in
transaction, including the transfer to BW Energy Rundu Limited of a 20% working
interest in the onshore exploration license PEL 73 in Namibia.

10mrd er anslått for AVO1. Ryktes minst 1mrd på AVO 2 og AVO 3 også.

Alright. Takk for raske og gode svar. Så litt ut i 2025 KAN vi trolig ha det samme produktet (borret letebrønner) men dog ikke samme volumet.

Det er boret to brønner og Galp anslår oil in place på voldsomme 10 milliarder fat eller mer.

Har de borret på Mopane eller er det seismikken som budgivere byr på?

Kudu ble funnet i 1974 og Mopane ble funnet i 2024 så det flåsete svaret er at Kudu ligger 50 år foran. Mange har vært innom Kudu, men alle har kastet kortene. Det er naturlig at Kudu kommer først i produksjon, men skal ikke vedde på det. Majors har potensial til å drive funnene fort til produksjon slik ministeren i Nambia har vært klar på. Det kan jo også hende at det blir et samarbeid mellom BWE og majors. Virker som bruker veldig lang tid på tolkingen av seismikken, og når de trekker Kudu inn i onshore satsningen så vet jeg hva jeg skal tro. Det siste de har uttrykt er vel en letebrønn tidlig i 2025, men jeg vil se det før jeg tror det.

Dumt spm sikkert men hvor i løypa er Mopane vs Kudu?
Dvs hvor sikre er reservene og hva er tidslinjen?

Meget interesann nyhet Fluefiskeren , som du sier har Petrobas god teft.

Petrobras har lagt inn bud på 40 % i Galp sitt Mopane funn på nabolisensen til Kudu. Det er ikke så ofte de tar veien fra Brasil, så her ser de virkelig et potensialt. Går vi langt tilbake i tid hang Afrika sammen med Sør-Amerika og Namibia tilsvarer sør i Brasil hvor det er gjort gigafunn.

Som linket til tidligere har også andre majors vist interesse for denne blokken.


https://energycapitalpower.com/petrobras-namibias-mopane-discovery/

Rule one offshore; if it works don't mess with it...whoever made the desicion to go full new technology with new ESPs should be fired... but this never happens in Norway I have seen. There should be more accountability.

Q1 conf call: And second question, a bit from the slide here is, with all the organic growth initiatives you have in the portfolio now, is M&A a bit more off the table or are you still kind of actively exploring that as well?

The M&A activity. I mean we have a lot on our table are we still having appetite for M&A?

We are looking at lots of things that comes our way. People want to talk to us. We're extremely appreciative of that. And we will always look but you are right in the sense that we feel we have a very, very attractive portfolio of assets. But of course, if we were to find something that we would find even more attractive than what we have in our portfolio today, sensible, let's say, financial development is then to go for the most attractive you have, first, which is -- that's the normal -- that's a normal thing we will do. So yes, we're constantly looking at M&A opportunities.

Da blir det en installasjon av en konvensjonell ESP hver 14 dag. Med andre ord en 8 trinns rakett med en Grand Finale med boringen av letebrønn på Bourdon med boreriggen Norve.

Sounds very optimistic. There's no mention of any workouts being performed yet
In addition this will count as OPEX and hence reduce profit significantly which is what the market responds to

Den som venter på noe godt.............

Jeg ser den, er litt usikker på om det er riktig å legge til grunn ca. 30 000 fat for juli, og høyere for august, kanskje 35 000 fat. Basert på informasjonen fra Pen kan dette synes riktig. Uansett, for juli blir det igjen lavere produksjonskost og høyere produksjon, og dette vil bli ytterligere forbedret i august og månedene fremover.

Tvilsomt. Pen skriver «is expected to reach 40.000»

Skulle ønsket de kunne sagt noe om når produksjonen kom opp mot full kapasitet (jeg legger til grunn ca 12. juni, og at produksjonen på Dussafu fra da av har lagt mellom 35-4000 fat). Når de ikke har sagt noe legger jeg til grunn det de opplyste til myndighetene i Gabon.

Positivt at de har sikret leveransene til alle de konvensjonelle esp'ene og fått kontrakt med boreriggen Norve ytterligere i 109 dager.

Bourdon vil også bli boret.

Foreløpig ingen nyheter av tolkningen av 3D seismikken på Kudu.

Syns jo ikke dette er yberbull akkurat. Ting tar veldig lang tid. Gjeld på musd 600.

Og da var meldinger ute fra Pen og BWE

BW Energy: Q2 2024 trading update

BW Energy: Q2 2024 trading update

BW Energy will publish financial figures for the second quarter and first half
year of 2024 on Thursday, 29 August 2024.

Net production to BW Energy was 2.14 million barrels of oil in the second
quarter of 2024. This includes production from the Tortue, Hibiscus and Hibiscus
South fields in the Dussafu licence (73.5% working interest) and production from
the Golfinho field (100% working interest).




DUSSAFU

Production from the Dussafu licence was 1.41 million barrels net to BW Energy in
the quarter, an average of 15,570 barrels of oil per day. Production was
impacted by planned annual maintenance of the FPSO BW Adolo as well as the
situation with defective ESPs (Electrical Submersible Pumps). The annual
scheduled maintenance resulted in a shutdown of 21 days during May and June.
Work included tank-refurbishments as well as work on the boiler system, the gas
lift compressors and other general systems improvements. BW Energy completed one
lifting in the quarter in May of ~ 734,000 barrels net at an average realised
price of USD 80 per barrel. Production costs (excluding royalties) for the
period were approximately USD 29 per barrel. This compares with first quarter
production costs of USD 23 per barrel, reflecting the lower production.

The net sold volume, which is the basis for revenue recognition in the financial
statement, was approximately 940,000 barrels, including 32,500 barrels of DMO
deliveries and 173,000 barrels of state profit oil, with an under-lift position
of 341,000 barrels at the end of the period.

In May, the Company made a substantial oil discovery with good reservoir quality
in the DHIBM-7P pilot well, appraising the northern flank of the Hibiscus field.
The preliminary evaluation indicates an increase in Hibiscus gross recoverable
reserves (mid-case) of 8-12 million barrels of oil. The well will be drilled as
a production well later in the present program.

Earlier in May, the DHBSM-2P pilot well confirmed a northern extension of the
Hibiscus South field with good reservoir quality, increasing reserve estimates
of Hibiscus South. The DHBSM-2H development well has completed drilling and has
been completed with the first conventional ESP system. The well was handed over
from drilling to production on 25 July and will now start production after hook-
up and testing.

BW Energy has extended the contract for the Borr Norve jack-up, and the delivery
of conventional ESP systems including spares has now been secured, allowing all
previously drilled and completed wells to be successively worked over and
completed with conventional ESP systems. The contract extension is also expected
to include the drilling of the Bourdon prospect.




GOLFINHO

Production from the Golfinho licence was 732,000 barrels net in the quarter, an
average of 8,040 barrels of oil per day. Production was impacted by reduced gas-
lift compressor up-time and lack of gas production from the GLF-28 well. GLF-28
has subsequently been successfully restarted after ROV intervention, and work is
underway to improve reliability. A 12-day shutdown is scheduled for August on
the FPSO Cidade de Vitória, to undertake compressor maintenance and other
activities to improve production stability.

A lifting of 505,000 barrels was completed in April with a realised price of USD
90 per barrel, followed by a lifting in June of 500,000 barrels with a realised
price of USD 83 per barrel. Remaining inventory was ~385,000 barrels at the end
of the period. The production cost, excluding royalties, averaged USD 48 per
barrel.




OTHER NEWS

In April, BW Energy executed a sale and leaseback agreement with a Minsheng
Financial Leasing Co entity (MSFL) for the MaBoMo production facility on the
Dussafu Licence. The transaction added USD 110 million of net liquidity for the
Company.

In June, the Company issued a USD 100 million, five-year senior unsecured bonds
with a coupon of 10% per annum. The bond placement met strong investor demand
across Nordic and international markets and was significantly oversubscribed. An
application has been made for the bonds to be listed on the Oslo Stock
Exchange.

In July, the Company signed a Letter Agreement with Reconnaissance Energy Africa
Ltd ("ReconAfrica") to acquire ~16.8 million shares and ~16.8 million warrants
for a total consideration of USD 16 million in ReconAfrica's announced equity
raise. By participating in the equity raise, BW Energy will also receive a 20%
non-operating interest in the onshore Petroleum Exploration License 73 ("PEL
73"). This enables the Company to expand its footprint in this strategically
important energy region.




HEDGING, LIQIDITY AND DEBT

BW Energy expects to recognise a net loss of USD 1.5 million in the second
quarter related to the hedging program, of which USD 0.8 million is
unrealised.

The Company had a cash balance of approximately USD 244 million on 30 June
2024, compared to USD 150 last quarter. The increase reflects the net impact
from oil sold in the period, proceeds from the MaBoMo sale leaseback, the bond
issue, repayment on the RBL facility and investments. Investments for the period
are primarily related the ongoing Hibiscus Ruche field development program.

The Company had a total drawn debt balance of USD 589.2 million on 30 June
including the MaBoMo lease financing, the bond debt, as well as a USD 70 million
principal repayment on the Dussafu RBL.



For further information, please contact:

Brice Morlot, CFO BW Energy, +33.7.81.11.41.16

ir@bwenergy.no (mailto:ir@bwenergy.no)