Cairn targets early 2019 for SNE field FID

Cairn Energy aims to have the Senegalese government approval for its SNE field development plan by November 2018 and plans to make a final investment decision (FID) for the project in early 2019. 

Cairn Energy is the operator of three blocks offshore Senegal (Rufisque, Sangomar and Sangomar Deep (RSSD)). The Sangomar Deep portion of offshore Senegal PSC contains the SNE field. Cairn’s partners off Senegal are Woodside, FAR Limited, and Petrosen. Woodside’s participation in the acreage offshore Senegal, obtained through the acquisition of interest from ConocoPhillips, was challenged by Far through an arbitration process against Conoco started in June 2017.

In its 4Q 2017 update on Wednesday, FAR said that the RSSD joint venture during the quarter confirmed completion the of SNE field appraisal and progressed pre-development activities for the first phase of development, as previously reported by Offshore Energy Today. 

FAR further confirmed that the joint venture is completing work in relation to a concept select decision. The development concept being considered by the joint venture is a standalone FPSO facility with subsea wells and infrastructure. The project will be designed to allow flexibility for anticipated subsequent development phases with subsea tie backs from other reservoir intervals and fields.

The process of planning the first phase of the development of the SNE field is well underway and the Senegal joint venture is in the final stages of “concept select” before submitting the evaluation report  to the Government of Senegal in May this year, FAR said.

The evaluation report is the key document describing the concept to commercialize the SNE field. This will be broadly, a phased development aimed at delivering first oil in 2021-23.

 

FID in early 2019 

 

According to FAR, the focus has been on ensuring that the SNE development planning is progressing as per the tight schedule proposed by the joint venture to enable government approval of the development plan by November this year and achieve the milestone of Final Investment Decision (FID) in early 2019. The FID was initially expected to be taken by the end of 2018.

The first phase of the SNE development is expected to have an initial well count of approximately 25 wells. It will be focused on developing the core of the SNE field where the 500 series reservoir sands are thickest and subsequent phases focused on tying back the oil on the flanks of the SNE field, satellite discoveries and producing gas from the field.

Cairn said in August last year it had already started engaging with major contractors prior to formal tendering for the FPSO and subsea infrastructure later that year.

 

 

Tying two new discoveries to SNE

 

FAR also said that, in the previous quarter, notices of discovery were submitted to the Government of Senegal for the two new 2017 discoveries made with the FAN South-1 and SNE North-1 wells. The JV has made a submission to the Government for an evaluation program and period for the SNE North discovery and is concluding the application for the evaluation program for the FAN South discovery.

Both discoveries are within tieback range to the planned development over the SNE field and hence, current plans are that future evaluation of these discoveries will be undertaken with an eye to tying to SNE in later phases of the field development. This will optimize capital expenditure and prolong the producing life of the field.

Offshore Energy Today Staff

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