Nigeria, Iran Battle for OPEC's No.2 Position

- Nigeria, Iran Battle for OPEC's No.2 Position

Thursday, July 28, 2011
OilPrice.com
by Charles Kennedy

Iran retains its position as the second-largest producer in the Organization of Petroleum Exporting Countries, despite a recent OPEC report that Nigeria moved from the organization's third to second place, OPEC Governor Mohammad Ali Khatibi said.

OPECs' Annual Statistical Bulletin had put Nigeria ahead of Iran, but Iranian experts said they were examining the report, This Day newspaper reported.

Khatibi contended that OPEC's rankings were not based on export but determined by production data, commenting, "OPEC rationing is based on production, not export, and Iran still holds the second-largest OPEC producer status and no change has happened in this regard. In the report, Iran's oil income exceeds that of Nigeria in 2010. Then how would it be possible for Nigeria's oil income to be less than that of Iran despite having boosted its exports?"

Khatibi added that Iranian experts had found ambiguities in some of the figures in the OPEC report and accordingly the Iranian analysts "did not confirm Nigeria's export increase."

Reserves are one of the criteria OPEC has used to set output targets. Iran and Iraq were rivals in the past over OPEC quotas and OPEC in the next few years is expected to address the issue of bringing Iraq back into the quota system, from which it is currently exempted.

(Charles Kennedy is Deputy Editor of OilPrice.com. The original article appears here.)

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Hydrocarbons Identified at Mart's Nigeria Well

- Hydrocarbons Identified at Mart's Nigeria Well

Wednesday, July 20, 201
Mart Resources Inc.

Mart Resources and its co-venturers, Midwestern O&G (Operator of the Umusadege field in Nigeria) and Suntrust Oil provided an update on the UMU-8 well in the Umusadege field.

The UMU-8 well has reached a final total drilling depth of 8593 feet. Open hole wireline logs have been run with results indicating a total of 16 hydrocarbon bearing sands. The well logs indicate a cumulative gross pay of approximately 385 feet in the 16 sands encountered by the well.

All of the UMU-8 well's primary objectives, including the IX, XI, XIIa, XIIb, and XV sands were hydrocarbon bearing sands based on well log interpretation with results indicating gross oil pay of 32 feet, 14 feet, 39 feet, 26 feet and 11 feet respectively. 9 5/8" production casing has successfully been run and cemented.

The next phase of operations will include perforating the five sands and the installation of completion equipment consisting of a dual tubing string (3 1/2 inch and 2 7/8 inch) configuration. The 3 1/2 inch tubing will have the XV, XIIa and XIIb sands completed and the 2 7/8 inch tubing will have the XI and IX sands completed allowing for future multi-zone production. After the completion equipment is installed, testing on the five individual sands will be conducted. While the dual string will allow for completion and testing of the five sands, it is anticipated that only two sands will initially be produced at any given time.

By way of update, negotiations with the operator of the export pipeline to increase export capacity for the Umusadege field are ongoing and have not yet been finalized. Mart and its co-venturers are continuing to evaluate new pipeline and export options to provide an alternative for future production capacity.
Chairman's Comment

Wade Cherwayko, Chairman and CEO of Mart, said, "Initial interpretation of the logs for the UMU-8 well indicate the primary objective sands are hydrocarbon bearing, including the XI and XV sands that have no proved or probable reserves assigned to them. If testing of the XI and XV sands is successful, the Umusadege field reserves could be increased from previously disclosed reserve estimates."

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AsherXino Farms-Out Stake Offshore Nigeria

- AsherXino Farms-Out Stake Offshore Nigeria

Wednesday, June 15, 2011
AsherXino Corp.

AsherXino has executed formal documents with a leading international oil service company for US $10,000,000 in relation to the farm-out of an 8% working interest in its Nigeria offshore concession.

This transaction follows an additional farm-out for US $7,500,000.

AsherXino had previously entered into a farm-in agreement for a 40% working interest in the Nigeria offshore concession, upon payment of a required signature bonus of US $12,500,000 to the Nigeria government. The remaining 60% of the concession is held by the Nigeria local partner in compliance with the Nigeria local content law.

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CIS Awarded Major Contract by Weatherford Nigeria

- CIS Awarded Major Contract by Weatherford Nigeria

Monday, May 23, 2011
Conductor Installation Services Ltd.

Conductor Installation Services (CIS) has been awarded the largest contract in its history by Weatherford Nigeria. The USD multi-million dollar contract requires CIS to provide a range of conductor installation services in Nigeria on behalf of two major operators in the region.

Services will be carried out in conjunction with construction of a jetty, onshore and offshore platforms, and offshore stand-alone conductors. In addition to installing conductors, CIS will provide conductor make-up and cold-cutting services, and a variety of installation tooling equipment, including connection drive chasers and a range of directional drive shoes.

To carry out the conductor-driving operations, CIS will use two 150 kJ and two 90 kJ hydraulic hammers that are based permanently in Nigeria to support operations in the region. While the powerful 150 kJ hammer is designed to drive the larger conductors that measure up to 42 inches, the 90 kJ hammer is typically used to install smaller 20-inch to 36-inch conductors. CIS anticipates that it will be drive approximately 48 slots throughout the program, which is scheduled for completion in 2013.

Driving slots for construction of offshore barge

Already, CIS has commenced work on the first phase of the conductor installation program, which involves driving slots for construction of an offshore barge. This project requires CIS to install 36-inch conductors utilizing its 90 kJ hydraulic hammer spread. The contract is being supported by CIS from Port Harcourt, Nigeria and from its global headquarters in Great Yarmouth, England.

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Sinopec Gets JDA Nod for Extension of Exploration Phase in Nigeria

- Sinopec Gets JDA Nod for Extension of Exploration Phase in Nigeria

Thursday, May 19, 2011
ERHC Energy Inc.

ERHC announced that the Nigeria-São Tomé & Príncipe Joint Development Authority (JDA) has approved a 12-month extension to Exploration Phase I Joint Development Zone (JDZ) Block 2. ERHC holds a 22 percent working interest in JDZ Block 2 which is operated by ERHC's technical partner, Sinopec Corp.

The JDA approval of extension is subject to final approval by the Nigeria-São Tomé & Príncipe Joint Ministerial Council.

ERHC's partner, Sinopec Corp., completed drilling of the Bomu-1 exploration well in Block 2 in October 2009. The well was drilled to a total depth of 3,580 meters, targeting 13 individual sands. Eight sands were found to contain biogenic methane gas. During the Exploration Phase I extension, the contracting parties led by the operator are expected to conduct further geological and geophysical studies on the Block. Further, they will assess exploration strategy and overall course of action regarding Exploration Phase II.

Negotiations on the exploration program in JDZ Blocks 3 and 4 continue between the JDA and the contracting parties, led by Addax Petroleum. ERHC holds 10 percent working interest in JDZ Block 3 and 19.5 percent working interest in JDZ Block 4.

In addition to its working interests in JDZ Blocks 2, 3 and 4, ERHC holds working interests in Blocks 5, 6 and 9 of the JDZ. ERHC also holds 100 percent working interests in Blocks 4 and 11 of the Sao Tome and Principe Exclusive Economic Zone (EEZ) with an option to acquire up to 15 percent working interests in two more Blocks in the EEZ.

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Pacific Drilling Gains Total Nigeria Commitment

Pacific Drilling Gains Total Nigeria Commitment

Tuesday, May 03, 2011
Pacific Drilling S.A.

Pacific Drilling S.A. announced Monday that their latest generation drillship, the Pacific Scirocco, has received a Letter of Award from Total E&P Nigeria Limited, subject to completion of formalities with relevant government agencies in the near future, to perform exploration and development work in Nigeria. The minimum duration of the award is for a one-year initial term at a dayrate of $470,000 plus mobilization and client requested upgrades. The agreement further contemplates two one-year options at Totals discretion.

We are very pleased to announce a new core relationship with Total, a leading deepwater operator, consistent with our vision to work with the best in the industry, commented Pacific Drilling CEO Chris Beckett. This represents Pacific Drillings third commitment from a major oil company, including the two previously announced contracts for the Pacific Santa Ana and the Pacific Bora both contracted to Chevron in the Gulf of Mexico and Nigeria respectively.

Pacific Drillings fourth ultra-deepwater drillship, the Pacific Mistral, is under construction at Samsung Heavy Industries. The Mistral is on target for on time delivery in May 2011 and is the subject of advanced discussions with various clients. In March 2011 Pacific Drilling ordered two additional drillships from Samsung Heavy Industries, the Pacific Khamsin and the Pacific Sharav, scheduled for delivery in April and September 2013 respectively.

Pacific Drilling is a fast growing company that is dedicated to becoming the preferred ultra-deepwater drilling contractor. Pacific Drillings fleet of four of the newest ultra-deepwater drillships is expected to be in operation by the end of 2011, with two additional drillships on order at Samsung for delivery during 2013.

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Mart Notes Initial Test Results for Nigeria Well

Mart Notes Initial Test Results for Nigeria Well

Monday, April 25, 2011
Mart Resources Inc.

Mart Resources and its co-venturers, Midwestern O&G (Operator of the Umusadege field) and SunTrust Oil, reported encouraging initial test results from the first zone tested on the UMU-7 well located in the Umusadege field, onshore Nigeria.

The first test on the UMU-7 well was conducted on the XII sand, a 17 foot oil zone, which flowed at a stabilized rate of 2,459 barrels oil per day ("bopd") of 36 API gravity oil through 2 7/8 inch tubing on a 40/64 inch choke at a flowing tubing pressure of 180 psi. Basic sediment and water (BS&W) was 15% with gas/oil ratio of approximately 21 standard cubic feet per barrel.

Testing of the XIV sand is currently underway, with tests on the X and XVI to follow. Further updates will be provided on these sands once initial testing has been completed.

The UMU-7 well has been completed using a dual-tubing string configuration with the XVI and XIV sands completed in the 3 1⁄2 inch tubing string and the XII and X sands completed in the 2 7⁄8 inch tubing string. As a result of the completion technology used, the four zones that have been completed can be opened and closed at any time.