Far Ltd., an oil and gas company with a stake in the SNE oil field offshore Senegal, has said that the commercial viability of the field has been confirmed.
Following the successful results of the 2015/2016 appraisal program of the SNE oil field offshore FAR Ltd has assessed that the Minimum Economic Field Size for a commercial development has been achieved, the company said.
To remind, the company last week disclosed upgraded SNE Contingent Resources estimates independently certified by RISC. FAR’s revised contingent resource estimates on a 100% basis were:
• 1C (P90) 348 mmbbls; 2C (P50) 641 mmbbls; 3C (P10) 1128 mmbbls,
• 14% and 26% increase in 2C and 1C Contingent Resources respectively
In a statement on Thursday, Far said that with the successful completion of the 2015/2016 appraisal drilling program, the project was at the pre-FEED stage and development planning was underway.
FAR has completed pre-engineering studies with engineering consultancy AMOG and has prepared an SNE field concept development plan based on its upgraded P50 (2C) Contingent Resource estimate of 641 mmbbls, the company said.
A standalone FPSO development is envisaged with topside expansion capability for later SNE field development phases and satellite tie-backs.
FAR’s development concept represents a phased development approach with a plateau production rate of 140,000 bopd and first oil in 2022.
FAR’s cost estimates are as follows: Development expenditure: $13-15/bbl; Operating expenditure: $12-14/bbl (including FPSO lease costs); Development cost split: Drilling and completions 45%; Subsea 46%; Project + Other 9%.
FAR Managing Director Cath Norman said: “FAR has assessed that the SNE field has surpassed the Minimum Economic Field Size and the project is at the Pre-FEED stage with development planning underway. The focus is on optimizing and scaling a first phase development project.
“The project is well positioned to benefit from cost deflation. Development and operating costs estimates for the concept development are relatively low, making the break-even oil price very competitive in the current oil price environment at less than US$40 per barrel.
“Further appraisal drilling expected to start in late 2016 will target understanding the connectivity of the upper reservoirs and help optimize and scale the development.”
Cairn Energy is the operator of the field with a 40 percent stake, with ConocoPhillips 35%, FAR 15%, Petrosen 10% as partners.