Statoil halts Kwanza exploration program offshore Angola
Statoil ASA canceled the Stena Carron rig contract effective Nov. 21 after fulfilling work commitments in company-operated Blocks 38 and 39 of the presalt Kwanza basin offshore Angola.
Initial well results from the area were “disappointing,” Statoil says, and more time is needed to evaluate the results and mature new prospects before determining future activities. The company, however, notes that it still sees remaining prospectivity in the basin and on Statoil acreage.
The Dilolo and Jacare wells, the first two operated by Statoil in the play, have been drilled safely and efficiently, and the company has met its drilling commitments on the two blocks, Statoil says. The Jacare well on Block 38 has been plugged and abandoned.
Statoil is participating in eight commitment wells across five blocks in the Kwanza basin. Four wells have been completed and one well is ongoing in Block 40 operated by Total SA.
The costs of terminating the operations and associated services, including the Stena Carron drillship contract, will be expensed in the fourth quarter at $350 million. Statoil in 2013 signed a 3-year, $700 million contract with Stena Drilling for the drillship (OGJ Online, Mar. 19, 2013).
Statoil’s guidance for this year’s organic exploration expenditures remains at $3.5 billion, which includes the Jacare well cost in Block 38 to be expensed in fourth quarter. The signature bonus on Block 38 is expected to be impaired.
Earlier this year the company farmed out interest in Blocks 38 and 39 to WRG Angola Block 39 Ltd. and Colombia’s state-owned Ecopetrol SA (OGJ Online, Apr. 3, 2014; July 3, 2014). Statoil also gave up 5% interest in Eni SPA-operated Block 15/06(OGJ Online, May 12, 2014).
