From the Editor - December 2020

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From the Editor

Ceri Davies

Hope springs eternal.

Hello friends,

In last month’s Bulletin, I discussed the challenges we’re facing as an industry and how we might consider a transition to a new career. Well, what a difference a few weeks can make.  This month we’re witnessing signs of the industry rejuvenating. 

  
Leading off, the Oil and Gas Department of Greenland’s Ministry of Industry, Energy, Research and Labour announced that it is opening up three new offshore areas for exploration.  With environment and safety paramount, the authorities are providing the most attractive opportunities for companies willing to drive frontier exploration.  Recognizing the challenges and uncertainty associated with the prospecitvity of the West Coast, the Oil and Gas Department, in collaboration with Nunaoil and the Geological Survey of Denmark and Greenland have conducted a resource assessment, independently reviewed by the Norwegian Petroleum Directorate.  This assessment, along with the data used during the project, are available to interested oil and gas companies.

 

Post-well analysis of the eight exploration wells in Assessment Unit 1, Davis Strait and Labrador Sea.  https://greenland-resource-assessment.gl/

Elsewhere, hot on the back of a series of successful wells from the Apache-Total partnership, Staatsolie have announced the Suriname Shallow Offshore (SHO) Bid Round 2020/2021.  The 8 blocks on offer are in the western part of the country, directly south of Block 58, home of the recent discoveries.   With oil typing tying both the deepwater offshore discoveries and the infamous Tambarejdo field to the Albian, Cenomanian and Turonian source kitchen, these blocks are situated along the migration pathway of this prolific source system.  Although the 6 wells drilled to date in the offered areas have been unsuccessful economically, all have encountered hydrocarbons, with the AKT-2 Well delivering hydrocarbon shows across 205m in the Santonian with an additional 87m of shows in the Albian.  Virtual data rooms are available now with bids due by 30th April 2021. 

New Suriname Shallow Offshore (SHO) Bid Round 2020/2021.  https://www.staatsolie.com/en/suriname-sho-2020-2021-bid-round/

Closer to home, the Gulf of Mexico is home to numerous giant fields and to testing the limits of technology.  The GOM has delivered for the US economy for over 70 years.  Despite the 50,000+ wells that have been drilled in the GOM, new plays and concepts are still being developed and the various yet-to-find assessments remain healthy.  Beginning back in 1954, this month we saw the 131st Gulf of Mexico lease sale.   Although GOM exploration will be topical as we enter the New Year, with 105 bids placed from 23 companies, the highest bidders provided a reassuring mix of European Super Majors and local Texas based companies.    



Top Ten Companies Based on Total Number of High Bids Submitted.  256 GOM Lease Sale.  https://www.boem.gov/sale-256

Lastly, the oil price. Let’s hope the trend continues! 

Brent and West Texas Oil Price, Friday November 20th.  www.oilprice.com

If your time allows, I encourage you to attend the EAGE-HGS Latin America conference, taking place virtually, December 1-3.  Next year we hope to hold the event in early October, in person, in Houston.
 

Until next month, have a good Holiday and hopefully see you in person in 2021.

Ceri